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Contents

Delivering Transformation
The cover of ECERDCs Annual Report 2010 incorporates a blue
background that resembles the bold swirls of the Wau, the traditional Malay kite
which represents the unique identity of the East Coast Economic Region (ECER),
reflecting growth. The sense of energy in this design symbolises the transformation that
is currently being delivered in ECER. This transformation has already shown its positive
impact among the various stakeholders of ECER, who include our children, the future
generation, the local populace and the investors.

Page 2

Message from Chairman of the East Coast Economic


Region Development Council (ECERDC)

Page 6

Report from the Chief Executive Officer


of the East Coast Economic Region Development Council

Page 18

Council Members

Page 20

Audit Committee

Page 21

ECERDC Organisational Structure

Page 22

Management Committee

Page 24

ECER: Delivering Transformation

Page 28




Spurring Development in the ECER: The Key Drivers


- Tourism
- Oil, Gas & Petrochemical
- Manufacturing
- Agriculture
- Human Capital Development

Page 66

Enabling Sustainable Development: Environment

Page 78

The ECER Special Economic Zone: Accelerating Growth

Page 86

ECER: The Investors Gateway to Asia-Pacific

Page 90

ECER in the News

Page 98

Calendar of Events

Page 112

Our Team

Page 116

Financial Statement

Page 132

Audit Committee Report

Message from Chairman Of


The East Coast Economic Region
Development Council (Ecerdc)
The transformation in the Region is indeed people-centric, as the impact of ECER projects
will permeate to the local residents who will benefit from the higher income generated
through greater employment and entrepreneurial opportunities, resulting from all the
development that is taking place in the Region.

As Chairman of the East Coast Economic Region Development


Council (ECERDC), I am pleased to present our third Annual Report
for the year ended December 31, 2010.
With its vision to become a developed region by 2020, the East
Coast Economic Region (ECER) has made remarkable progress
during the year under review as ECERDC continues to deliver the
transformation within the Region for the benefit of the local populace.
I am pleased to note that as at the end of 2010, a total of 67 projects approved
by the Government for ECER under the 9th Malaysia Plan are currently in various
stages of implementation. The projects cover the key economic clusters of
Tourism, Oil, Gas & Petrochemical, Manufacturing, Agriculture and Education that
will accelerate the growth in ECER. They also include human capital and social
development programmes that will help elevate the skills, knowledge and income
level of the people.
While the year 2009 was regarded as the year of Transformation in Motion for
ECER, 2010 can aptly be defined as the year where the transformation is delivered in
the Region. This transformation of ECER indeed runs parallel with the Governments
Economic Transformation Programme (ETP) which will turn Malaysia into a highincome nation by 2020.
The ETP, together with the Government Transformation Programme (GTP), the New
Economic Model (NEM) and the 10th Malaysia Plan (10MP) will carve Malaysias
path towards a modern, inclusive and high-income society and ECER is well on its
way to becoming one of their key beneficiaries.
In line with the ETP, all of ECERs clusters support the National Key Economic
Areas (NKEA) which include oil and gas, palm oil and related products, tourism and
agriculture. ECER projects are also carried out in the same vein as the Governments
Entry Point Projects (EPP), where the emphasis is on private investment-led projects
that will contribute significantly to the Gross National Income (GNI).
2 ECERDC 2010 ANNUAL REPORT

To spur the development within the Region, the Government in 2009 has launched the
ECER Special Economic Zone (ECER SEZ), a concentration of high-impact projects within
an integrated development zone that will act as the catalyst of economic growth within
ECER. Stretching from Kertih in Terengganu to Pekan in Pahang, the ECER SEZ is set to
create 50% of all jobs and account for 80% of all economic output in the Region.

37

ECER projects match the


Governments Entry Point
Projects (EPP).

I am pleased to note that several high-impact projects in the ECER SEZ, such as the Kertih
Polymer Park (KPP), Pekan Automotive Park (PAP), Palm Oil Industrial Cluster (POIC),
Gambang Halal Park and Agropolitan Pekan are already on the ground and progressing
well. ECER SEZ is also home to the Kertih and Gebeng Integrated Petrochemical
Complexes, whose existence can be leveraged by the Oil, Gas & Petrochemical investors
in the KPP. Other projects that will be implemented in the ECER SEZ include the Fish
Processing Park in Kuantan, Cherating Mainland Coastal Tourism and Sungai Lembing
Ecotourism, all of which will further drive the economic growth of the Region.
A project of great importance in the ECER SEZ is the development of Kuantan Port City
(KPC). One of its key components is the expansion of Kuantan Port into a deepwater port.
Once completed, Kuantan Port will be able to serve bigger and more modern vessels.
The Government foresees that Kuantan Port will be a major port in the eastern region,
a key gateway for Asia Pacific trade and a major logistics hub, serving the clusters of
petrochemical, palm oil and automotive, as well as becoming a major industrial and
manufacturing zone.
On the efforts towards eradicating poverty, ECERDC-led projects such as Pekan
Agropolitan, South Kelantan Agropolitan and Besut-Setiu Agropolitan have also shown
good progress in terms of improving the lives of the rural poor.
The Pekan Agropolitan project participants in Runchang and Batu 8, Lepar for instance,
are currently earning an average income of RM1,000 per month through the primary
economic activity of sheep rearing. They include 30 Orang Asli participants in Runchang
and another 100 participants in Batu 8, Lepar who have already moved into their new,
fully-furnished houses built by the Government in September 2010.

ECERDC 2010 ANNUAL REPORT 3

High Res Pic

Similarly encouraging outcome also applies to Sinar ECER programme, as it


continues to transform the lives of nearly 100 children, including the Orang Asli, in
Pekan Agropolitan, Pahang and South Kelantan Agropolitan in Gua Musang.
I am also pleased with ECERDCs achievement in reviving the areas formerly
under the administration of Development Authority of Pahang Tenggara (DARA)
and Jengka Regional Development Authority (LKWJ) as entrusted by the Federal
Government in 2010.
Under this special project, the Government through ECERDC has channelled a total
sum of RM49.5 million to the six respective local authorities in the areas for the
implementation of 107 projects. The projects include socio-economic community
programmes, infrastructure projects, general maintenance projects and micro
development projects that have benefited local residents.
The key to future development in ECER still depends largely on private investments.
Since its inception in 2007, ECER has managed to attract RM36.5 billion worth of
investments as of end-December 2010. ECERDC has targeted a total investment of
RM50 billion by the year 2020, with inbound investments of RM5 billion every year.
I am pleased with ECERDCs investment promotion efforts done in collaboration
with the Malaysian Industrial Development Authority (MIDA) and the Ministry of
International Trade and Industry (MITI) in the key focus markets such as the Middle
East, China and India in 2010, which have already seen fruitful results.
To further attract the arrival of more investors, the Government is consistently
developing and upgrading the Regions transportation networks and infrastructure
comprising road, air, maritime and rail facilities. Such projects are necessary to
improve the Regions connectivity to other growth areas both nationally and
internationally, as well as to increase the inter-modal transport links within ECER.
A holistic transformation of the Region also needs to address the criticality of
human capital development. The Government is fully aware that the development of
physical infrastructure in ECER will have to go hand-in-hand with the development
of its human capital to ensure a sustainable and inclusive growth within the Region.
Following the success of its KerJaya ECER programme launched in 2009, ECERDC
has introduced another human capital development initiative in April 2010 known
as empower in Bentong, Pahang. This project is part of the Councils effort to
boost the academic achievement of local students and create entrepreneurship

4 ECERDC 2010 ANNUAL REPORT

opportunities for its residents through skills training programmes funded by ECERDC.
The 10-month project has already shown positive results, as reflected in the participants
academic achievement and higher income as the participants embark on their own
entrepreneurship ventures.
ECERs vision to become a developed region by 2020 can only be achieved through the
strong support of the people of the Region, Federal and State agencies, the private sector,
as well as local and foreign investors.
I can assure the investors and the people of ECER that the Government is fully committed
to ensure the successful implementation of ECER projects.

ECERDC has targeted a


total investment of

50

RM
billion

for ECER by the year 2020,


with inbound investments
of RM5 billion every year.

I am pleased to announce that the Region is ready to welcome the arrival of more investors,
both from Malaysia and abroad. The basic infrastructure in ECER is already in place and
the Region also offers them a very competitive package of both fiscal and non-fiscal
incentives.
I would like to take this opportunity to record my sincere appreciation to all those who have,
and continue to support the implementation of ECER projects and for their ongoing efforts
in ensuring the success of this crucial economic development programme. In particular,
I would like to thank the Federal Government and the respective State Governments of
Kelantan, Terengganu, Pahang and Johor, as well as the relevant agencies and the private
sector for playing a key role in the development of ECER.
My utmost appreciation also goes to the Council, the Management team and the staff
of ECERDC for their hard work, passion and commitment in ensuring the smooth
implementation of ECER projects and programmes.
The success shown by ECER to date would not be possible without the collaborative
efforts by all parties involved. With their continuous support, I am confident that ECERs
vision, aspirations and delivery of transformation will be achieved.

1Malaysia People First, Performance Now

Dato Sri Mohd Najib


ECERDC 2010 ANNUAL REPORT 5

Report from the Chief Executive Officer of


the East Coast Economic Region Development Council
It gives me great pleasure as the Chief Executive Officer of the East
Coast Economic Region Development Council (ECERDC) to present
a review of the projects and development that have been achieved
within the East Coast Economic Region (ECER) for the year ended
31 December 2010.
I am happy to present that 2010 has been a year of achievements for ECER. It
is gratifying to see the progress and impact the year has had in bringing positive
change to the four million residents of the Region.
During the year under review, development in ECER continues to be driven by
Public-Private Sector partnership, with the Federal Government spending on
infrastructure support and the private sector injecting investments into the Region.
As outlined in the ECER Master Plan, economic growth in the Region will be propelled
by the key clusters of Tourism, Oil, Gas & Petrochemical, Manufacturing, Agriculture
and Education. The cluster development approach that had been established for
the ECER is in synergy with the National Key Economic Areas (NKEAs) which have
been identified under Malaysias Economic Transformation Programme (ETP).
At ECERDC, we will continue to implement the necessary infrastructure and socioeconomic projects as planned, while intensifying our efforts to bring in more foreign
and domestic investments into the Region.

PROJECTS AND INVESTMENTS IN ECER


The development in ECER is progressing well on track, with all the 67 projects
approved by the Government for the Region under the 9th Malaysia Plan (9MP)
currently in various stages of implementation.
The projects, which have a total value of RM1.4 billion, represent the Governments
investments in providing the required infrastructure and implementing various
socio-economic programmes in the Region.
All the projects implemented in ECER are in line with the New Economic Model
(NEM) and they include Entry Point Projects (EPPs) where the emphasis is on private
investment-led initiatives and will contribute significantly to the Gross National
Income (GNI).

6 ECERDC 2010 ANNUAL REPORT

In terms of investment, the Region has attracted RM36.5 billion from domestic and foreign
investors. Of the total amount, RM15.3 billion has already been received, consisting
of 158 investments which led to the creation of 17,500 new jobs for ECER residents as at
31 December 2010.
Through these projects and their investment value, the aim of eradicating poverty,
generating higher household income and developing new entrepreneurs is progressing
well in the ECER.

67

All
projects

approved for ECER under


9MP currently in various
stages of implemention.

TOURISM
Tourism is a major income earner for Malaysia, with ECER being a significant contributor
with its cultural heritage and natural beauty.
In the period up to December 2010, several projects in this cluster had progressed from
the Business Strategy & Implementation Plan (BSIP) stage to detailed design works and
implementation.
The projects include the Mainland Coastal Tourism projects for Pantai Sepat, Cherating,
Pulau Besar / Kampung Penarik and Teluk Bidara, as well as Dungun Town Coastal
Tourism and Pekan Heritage Tourism.
In Ecotourism, BSIP studies were conducted for Setiu Wetlands State Park and the
ecotourism belt covering Lanchang, Lipis, Gua Musang and Kuala Krai.
A Strategic Implementation Plan (SIP) study was carried out for Tasik Chini State Park,
which is to undergo integrated rehabilitation and conservation works due to its profile as
the first UNESCO biosphere reserve in Malaysia.
ECERDC has also undertaken the Integrated Management Plan study for Lojing Highlands
in Kelantan, which had been identified as a Special Management Area under the National
Physical Plan and the ECER Master Plan.
During the year under review, a BSIP study was also undertaken on the Kuala Terengganu
City Centre (KTCC) project. Under the KTCC Master Plan, Kuala Terengganu will
be developed into a vibrant Heritage Waterfront City, incorporating a modern urban
development which is integrated with its age-old traditions, culture and heritage.

ECERDC 2010 ANNUAL REPORT 7

OIL, GAS & PETROCHEMICAL


While ECER has long-established upstream activities in this cluster, more projects in the downstream and manufacturing related
sectors have been enhanced to add value to existing output.
The existence of two petrochemical clusters in Gebeng, Pahang and Kertih, Terengganu in ECER will enable investors who are
interested to venture in midstream and downstream petrochemical activities to establish their operations in the Region. Realising
this, ECERDC has established the Kertih Polymer Park (KPP) which would leverage on the readily available feedstock from the
nearby Kertih Integrated Petrochemical Complex and Gebeng Integrated Petrochemical Complex.
Notable progress has been made at KPP during the year under review. Land and infrastructure development works for Phase 1A
and 1B of KPP have already been completed, while earthworks and infrastructure works for Phase 1C of KPP have commenced
in July 2010 and are currently in progress.
Companies already operating at KPP include Hi Essence Cable Sdn Bhd and MIE Copper Sdn Bhd, while two other investors
have committed a total of RM165 million to establish operations in KPP.
These are positive developments in the creation of employment opportunities as well as the development of new entrepreneurs
in support activities.
Moving forward, an eminent expansion programme in the area of polymers is also expected to take place in ECERs oil, gas and
petrochemical cluster in the coming years, which will accelerate the growth in the Region even further.

MANUFACTURING
ECERs manufacturing cluster serves as a major source of growth in terms of Gross Domestic Product (GDP) and employment.
A total of seven BSIP studies were ongoing in 2010, of which five have already been completed by the year end. The completed
BSIP studies were for the Kemaman Heavy Industrial Park, Kemaman Boat Building and Repair Industrial Park, Kenaf Integrated
Park, Handicraft Industry Programme and Bentong Mixed Industrial Park.
In the fourth quarter of 2010, several projects have moved into their implementation phase:
Pekan Automotive Park (PAP)
The Pekan Automotive Park is envisioned to become a national and regional hub for car assembly, manufacturing of automotive
parts and components, as well as automotive R&D activities.
During the year under review, PAPs Central Marketing Complex (CMC) was being constructed while infrastructure and landscape
upgrading works were in progress. Infrastructure works for PAP (Phase 2) also began in October 2010. Several investors have
already expressed their interest to establish operations in PAP.
The establishment of PAP is in line with the National Automotive Policy (NAP) which will foster a more competitive market for
local and international companies. In view of the increasing competition within the regional automotive market, ECERDC intends
to position the Pekan Automotive Park as the eco-friendly, first mover in the production of environmentally-friendly vehicles,
8 ECERDC 2010 ANNUAL REPORT

which include electric vehicles and related technologies, such as battery suppliers,
transportation infrastructure and renewable energy providers.
Palm Oil Industrial Cluster (POIC)
The Palm Oil Industrial Cluster is an initiative by ECERDC that is aimed at accelerating
the development of the palm oil industry in the Region. Located in Kuantan in the state
of Pahang, POIC takes advantage of its proximity to Malaysias major palm oil producing
areas, petrochemical feedstock and easy accessibility to palm oil mills that produce
sufficient feedstock for the downstream activities.
Among the promoted sectors of the POIC are surfactant, biodiesel, food, biofertiliser,
animal feedmeal, biomass, phytonutrient and polyutherane. The Business Strategy,
Marketing and Implementation Plan for the development of the Palm Oil Industrial Cluster
(POIC) was completed in August 2010 and earthworks and infrastructure works for
the project began in October 2010. Once completed, the Park will offer an integrated
manufacturing location for investors venturing into the manufacture of downstream palm
oil products.

ECERDC has targeted a


total investment of

1.4

RM
billion

worth of projects in Tourism,


Oil, Gas & Petrochemical,
Manufacturing, Agriculture
and Education.

ECER Halal Parks


ECERDCs Halal Parks in Pasir Mas, Kelantan and Gambang, Pahang were planned in
response to the overwhelming global demand for Halal products. Pasir Mas Halal Parks
main focus will be on the food industry, while Gambang Halal Park will focus on both food
and non-food industries.
In 2010, earthworks and infrastructure works have commenced for the Gambang and
Pasir Mas Halal Parks and are expected to be ready to receive investors by the first
quarter of 2012.

AGRICULTURE
As a key cluster that will strengthen the nations food security requirements as well as provide
income generation and entrepreneurship opportunities to ECER residents, agriculture has
recorded highly encouraging progress during the year under review.
A total of 15 projects commenced comprising six livestock-related projects, five fish-based
projects and four in crops that involved herbal, cassava, citrus and pineapple based industries.
To ensure project sustainability, all agriculture related projects have been developed based on
the need to complete the products whole value chain, promoting private sector participation,
encouraging large-scale farming and leveraging on modern technology.

ECERDC 2010 ANNUAL REPORT 9

Livestock
The development plan for ECERs livestock industry has been successfully implemented during the review period. The first-tier
projects, out of a three-tier development strategy, have commenced construction in 2010.
Upon completion, both breeder farms at the Muadzam Shah Cattle Research & Innovation Centre in Pahang and the Kuala Berang
Goat Breeding & Innovation Centre in Terengganu will produce 1,200 breeder dairy cattle and 5,625 breeder goats respectively by
year 2015, which will benefit local farmers, agro-entrepreneurs and participants of Agropolitan projects.
In 2010, earthworks began for the Kuala Berang Goat Breeding & Innovation Centre in Terengganu. Two main components
will complement each other in the implementation of the first-tier and second-tier of the goat production programme, namely
Nucleus Farms and Multiplier Farms.
The construction work for the Ulu Tersat Multiplier Farm and Telaga Papan Commercial Farm for Boer goats has been completed
in 2010. The farms are commercially operated and managed by Terengganu Agrotech Development Corporation (TADC) a stateowned company to initiate the breeding programme and spearhead the goat production cluster in Terengganu.
Crops
Pineapple as an industrial crop in the region has also been promoted extensively. The first phase from the total land development
of 5,000 acres of the Rompin Integrated Pineapple Plantation project (RIPP) in Pahang has commenced construction in 2010.
The project is expected to offer 3,000 new employment opportunities to the local residents as well as 50 entrepreneurship
programmes through contract farming and satellite farming schemes.
Fisheries
The fisheries industry has traditionally been a significant source of livelihood in the ECER visibly influencing its socio-economic
landscape. Hence, efforts to uplift the socio-economic well-being of the region will have to inevitably focus on this sector.
The focal point of this development plan is the establishment of the Marine Fish & Shrimp Hatchery and Fish Seed Marketing Centre
in Merchong, Pahang and the establishment of the Freshwater Fish Hatchery & Fish Seed Marketing Centre in Raub, Pahang. Design
works for both projects have commenced in 2010. The Centre will function as a brood stock development centre, complemented
with a selective breeding R&D facility which aims to be a leading player in the production of improved stocks of fish seed in the
Region. Both high technology hatcheries will produce 10 million grouper and seabass fry and 20 million tilapia fry respectively.
To accommodate the intended linkages between the various fisheries value chains with the value added downstream activities,
three fish processing centres have been planned for development, to be located in the major fish and shrimp production
concentration areas along the coast. Design works have commenced for the Fish Processing Park in Tanah Putih, Kuantan and
Pengkalan Kubor Collection, Processing & Packaging Centre (CPPC), while the BSIP has commenced in 2010 for the Tok Bali
Integrated Fisheries Processing Park.

10 ECERDC 2010 ANNUAL REPORT

The development of a Herbal and Biotechnology Cluster in ECER has been recognised
as a key Entry Point Project (EPP) under the New Economic Model. Two sites have been
identified for the first phase of the project and detailed survey works were completed in
2010 for the development of two Integrated Herbal Plantations at Pasir Raja in the district
of Dungun, Terengganu and Chegar Perah in the district of Lipis, Pahang. Phase 2 of
the project will see the development of similar farms in Durian Mentangau, Dungun and
Rantau Manis, Gua Musang.

The Region has attracted

36.5

RM
billion

in investments from
domestic and foreign
investors.

AGROPOLITAN
The Agropolitan project is aimed at eradicating poverty in ECER and enhancing the income
of its participants. This integrated socio-economic project brings about positive change
in participants lives by developing land for agriculture-related activities, supported by
processing and marketing activities and resettlement of poor families.
There are three locations under the Pekan Agropolitan project in Pahang. At Batu 8, Lepar,
100 participants relocated to their new houses built by ECERDC in September 2010.
Among the facilities here are a kindergarten, multi-purpose hall and surau. Sheep rearing
is the primary activity in this location, with 60 Animal Production Units (APUs) for Dorper
sheep being built.
At the second location in Runchang which involves 30 Orang Asli participants, another 24
APUs for Dorper sheep are being constructed in addition to the existing 11 APUs.
Since August 2010, the Orang Asli participants have been earning a steady income of
RM600 monthly by working a minimum of four hours a day. The allowance is paid through
their personal bank account, which has encouraged a savings habit among them.
Tanjung Batu is a new site under the Pekan Agropolitan project. Site clearing works began
in 2010 to eventually build 213 houses for participants. Development works have also
begun on a 1,200-hectare oil palm estate, thus providing another source of income for the
participants in this area.
In 2010, ECERDC also began building 350 new houses in Gua Musang for relocation of
participants under the South Kelantan Agropolitan (SKA) project. The project will eventually
see the building of 3,000 new homes and oil palm plantations over 9,900 hectares of land.
Throughout 2010, the 10 pilot participants of SKA who have moved into their homes in
2009 have been earning a steady income of more than RM1,000 monthly by working in the
oil palm plantation and through cocoa planting as a subsidiary income.

ECERDC 2010 ANNUAL REPORT 11

High Res Pic

At the Besut-Setiu Agropolitan project, site clearing began in September 2010 for the construction of 100 homes and 50 APUs
for participants, as well as related infrastructure.
ECERDC Agropolitan Projects have received tremendous support from all parties involved, including approval of land by the
State Governments. FELDA is the Implementing Agency for both Pekan Agropolitan Project and Besut Setiu Apropolitan Project,
while KESEDAR was appointed as the Implementing Agency for South Kelantan Agropolitan Project. The role of the Implementing
Agencies is to manage participants and economic activities.

HUMAN CAPITAL DEVELOPMENT


ECERDC places great emphasis on developing the human capital within the Region in order to spur the implementation of
projects and attract further participation by foreign and domestic investors.
Centres of Excellence
The 15 Centres of Excellence (COE) established in five ECER universities continue to fulfill their support role to the needs
of industries in tourism, oil, gas and petrochemical, manufacturing, agriculture, Halal products, wood-based products and
biotechnology, and hospitality and tourism management.
The participating universities are Universiti Sultan Zainal Abidin (UniSZA), Universiti Malaysia Kelantan (UMK), Universiti Malaysia
Pahang (UMP), Universiti Malaysia Terengganu (UMT) and Universiti Teknologi Mara (UiTM).
In March 2010, ECERDC in collaboration with the Higher Education Ministry (KPT) and the Centre of Industry-Academia
Collaboration (CIAC) led by UMK organised its inaugural industry-academia entrepreneurial convention known as Konvensyen
Keusahawanan ECER-KPT 2010 in Kota Bharu.
The convention was part of ECERDCs effort to ensure that the expertise, research findings and the new technologies developed
by the COE at the universities are properly channelled to the participants for commercialisation purposes.
KerJaya ECER
KerJaya ECER programme was originally formulated to mitigate unemployment problems caused by the previous global economic
crisis. The programme consists of the Skills Training Programme (STP), Graduate Placement Opportunity (GPO) Programme and
Employee Placement Programme (EPP).
As of December 2010, a total of 1,379 ECER residents have successfully been employed through KerJaya ECERs GPO and
EPP. In addition, 1,268 trainees who graduated from the STP programme have successfully secured job placement in various
companies within ECER.

12 ECERDC 2010 ANNUAL REPORT

empower Bentong
empower is another human capital initiative by ECERDC which was launched in Bentong
Pahang in July 2010, as part of the Councils effort to boost the academic achievement
and employability of the locals, as well as create entrepreneurial opportunities for them
through the skills training provided.
As of 31 December 2010, a total of 1,035 participants from Bentong, Pahang had undergone
academic and skills training courses under the empower Bentong programme. Even
though the Skills Training courses were still ongoing as of end-2010, more than 120
participants have already obtained placements and were earning additional incomes of
between RM800 and RM1,000 per month.
For the Academic Training programme, 163 UPSR students and 119 PMR students
amongst its participants managed to score 100% passes in all subjects taken, surpassing
ECERDCs set targets.
Sinar ECER
For the children of Agropolitan project participants in South Kelantan Agropolitan, Gua
Musang and Pekan Agropolitan in Runchang, ECERDC has introduced the Sinar ECER
programme which encompasses academic activities, as well as public speaking skills and
the nurturing of self-confidence and self-management skills.
The potential for positive change in lives can be seen in the transformation of the mindset
of these children. An inspiring story comes from the Agropolitan settlement at Runchang in
Pahang, where Juyana Teor Bak Song of Sekolah Kebangsaan Runchang scored 5As in the
UPSR examination, the first ever child to do so from the Orang Asli community in Runchang.
ECER Entrepreneurship Development Programme (EEDP)
ECERDC has also introduced the ECER Entrepreneurship Development Programme
(EEDP) to increase the involvement of the Bumiputera Commercial and Industrial
Community (BCIC) and Small- and Medium-sized Industries (SMIs) in ECER. This will be
done through ECERDCs collaboration with the private sector.
Two pilot projects have been implemented in Mersing, Johor under EEDP, namely the
Vendor Development Programme-Sewing Project and Boat Building and Repair Centre
(BBRC). The projects involve the partnership between ECERDC and GIATMARA Sdn.
Bhd. with the support of the Mersing District Office.

ECERDC 2010 ANNUAL REPORT 13

Suri@Home
The Suri@Home women empowerment programme saw the addition of the Songket weaving project in Terengganu, which is
participated by three female participants. They are now generating a monthly income of around RM1,000.

TRANSPORTATION AND INFRASTRUCTURE


The development of transportation and infrastructure has always been a priority to the Federal Government. Infrastructure
comprising road, air, maritime and rail facilities will be upgraded to increase intermodal transport links within ECER, and to
improve the connectivity to other national growth areas. The improved infrastructure and connectivity will facilitate investment
activities within ECER.
The Integrated Master Plan of Kuantan Port City (KPC) was completed and handed over to Kuantan Municipal Council for
incorporation into Kuantan Local Plan. From the Master Plan, projects to improve roads, water supply and drainage for KPC
development have been initiated.
A BSIP was also undertaken for the Terengganu State ICT Centre, with the completion of the Inception Report in November.
The Centre is set to drive the growth of the ICT industry in ECER and also help achieve MSC status.
Several water works projects were also in various stages of implementation during 2010. Construction of a 2 km piping loop system
to improve the water quality in Gebeng was completed and handed over to the Pahang Water Supply Department in March.
A design was also ongoing for the elevated water storage tanks and pipelines to meet the water storage requirement for KPC.
The first Package of the Panching Water Treatment Plant at Felda Panching Timur commenced in August with site clearing and
earthworks. Upon completion, the water treatment plant will have a capacity of 160 million litres per day and is expected to
supply potable water to the Kuantan area as well as areas south of the Kuantan River.
Design works have also commenced in August for a water treatment plant in Ganchong, Pekan to bring treated water to Tanjung
Agas and the Pekan-Peramu area. With design works anticipated to be completed in mid-2012, construction of the water
treatment plant is expected to begin in early 2013.
Road projects have also moved ahead. The design of Package 1 for KPC Port Link Road has been completed with a new
interchange at the East Coast Expressway Phase 2. The construction will provide a high speed and reliable link from the industrial
areas in Terengganu and Kelantan to Kuantan Port.

14 ECERDC 2010 ANNUAL REPORT

As for the Mersing-Kg Sedili Coastal Road, the design works have been completed with
the Land Acquisition Plan for the Mersing-Kg Sedili road submitted to the Mersing Land
and District Office. The land acquisition exercise is targeted to be completed in 2011.
The construction of a new coastal road is anticipated to generate tourism activities as
the coastal area from Mersing town to Kg Sedili has great potential as a major tourism
destination.
The design for road improvement works from Sg Emas to Kg Peta in Taman Negara EndauRompin was completed with construction works to commence in 2011. The improvement
is expected to provide uninterrupted access into the national park as the road would be
raised above the flood level.
The Central Spine Road (CSR) will see the existing federal route from Kuala Krai to Simpang
Pelangai upgraded into a 2-lane dual carriageway. Upon completion, the CSR would have
a positive effect on the socio-economic growth of all small towns along its route.
Another road project is the construction of the new Bukit Kuang Bridge to replace the
existing bridge with a 2-lane dual carriageway. Construction for this project started in July
2010, and expected is to be completed in three years. Upon completion, it will ease traffic
congestion in the Kemaman area as well as provide faster connectivity between the east
coast and the west coast region.
The ongoing feasibility study for the East Coast Rail Route that will link ECER from Tumpat
to Kuala Lumpur in the Klang Valley will be completed by 2011. The objective of the
rail study is to ascertain the engineering viability as well as the economic and financial
feasibility for the proposed rail route. Discussions were held with various stakeholders to
confirm the alignment of the rail route linking the two places.
In addition, an Interim Report was also produced in 2010 for the coastal protection works
at Teluk Lipat, Dungun, Terengganu. The objective of the coastal protection works is to
protect Dungun coastal area which is severely affected by erosion.

ECERDC 2010 ANNUAL REPORT 15

REVIVAL OF FORMER DARA & LKWJ AREAS

Acknowledgements

In 2010, ECERDC was tasked by the Government to revive the areas formerly under the Development Authority of Pahang
Tenggara (DARA) and Jengka Regional Development Authority (LKWJ). ECERDC began the disbursement of RM49.5 million
from the Federal Government to the district and town councils of Maran, Rompin, Pekan, Bera, Jerantut and Temerloh for
maintenance and development projects.

As ECER progresses into a region that is delivering transformation to its residents, it is all
the more vital that the momentum gained since its inception in 2008 be maintained, and
indeed, accelerated.

The fund was used for socio-economic community development, infrastructure and maintenance projects, which include
construction and upgrading of roads and the drainage system.

ENVIRONMENT
ECERDC places utmost importance in safeguarding the Regions environment quality and resolutely subscribes to the principles
of sustainable development of stewardship to the environment. It hopes to improve the standard and sustainability in the quality
of life, as well as ensure the development activities in the Region are undertaken in a sustainable manner whereby its natural
resources are appropriately utilised. During the year, a SIP was carried out for Tasik Chini State Park for it to undergo integrated
rehabilitation and conservation works. An ecotourism attraction in ECER, Tasik Chini has been designated by UNESCO as the
first biosphere reserve in Malaysia.
The Integrated Management Plan study for Lojing Highlands in Kelantan has also been undertaken in 2010. In addition, tourism
activities planned under Kampung Penarik Mainland Coastal Tourism Development will be packaged and promoted with an
enforceable Management Plan in managing the Setiu Wetlands State Park. The park has been identified as a potential sustainable
economic catalyst through the creation of innovative tourism activities in the area.

INVESTMENTS
ECER continues to intensify its investment promotion efforts during the year under review by organising and participating in
various investment missions and promotion exhibitions in key focus markets such as China, the Middle East, India and Singapore.
This was done in collaboration with the Malaysian Industrial Development Authority (MIDA) and the Ministry of International Trade
and Industry (MITI).
Between the period of 2007 and December 2010, ECER managed to attract RM36.5 billion worth of investments, of which
RM15.3 billion had been received. Our participation in investment missions and promotions in 2010 alone generated more than
RM7 billion potential investment interest, with a sizable portion already approved and in various stages of implementation.
ECER will continue to be marketed as an attractive investment destination in Asia Pacific with a strong resource-based economy,
with emphasis on value-adding activities that capitalise on the existing resources. ECERDC will continue to promote key ECER
projects to both domestic and international investors, especially in the areas of Automotive Manufacturing, Halal Manufacturing,
Herbal & Biotechnology Industry, Kuantan Port City, Tourism and Education. With an attractive fiscal and non-fiscal incentive
package, as well as continuous infrastructure improvement setting the ground for investment to take off in the fast track, ECERDC
is looking forward to welcome more investment interest into ECER in the coming years.

16 ECERDC 2010 ANNUAL REPORT

With the progress achieved to date, the Region is ready to welcome more investments
from both domestic and abroad. This in turn, will help propel ECER in achieving its
vision of becoming a developed region by 2020 and at the same time, creating a highincome population.
I am therefore once again indebted to the leadership of our Prime Minister and Chairman of
ECERDC, Y.A.B. Dato Sri Mohd Najib bin Tun Haji Abdul Razak, for his vision, leadership and
guidance. My thanks are also due to our fifth Prime Minister, Y.A. Bhg. Tun Abdullah bin Haji
Ahmad Badawi, the National Corridor Development Adviser, for his advice and guidance.
I would also like to express my utmost appreciation to the respective Menteri Besar of
Kelantan, Terengganu, Pahang and Johor for their invaluable support and guidance in
facilitating all ECER projects in their states.
I also appreciate the guidance and directions given by the Council Members who
have brought their collective experience and personal insights in focussing efforts in
implementing ECER projects.
I am thankful to the Prime Ministers Department, the Economic Planning Unit, the PublicPrivate Partnership Unit and the Ministry of Finance, as well as the respective Federal and
State Government departments and agencies, for their continued support in the smooth
implementation of projects within ECER.
My thanks are also due to the tireless and dedicated team in ECERDC who carry the
responsibilities of strategic planning, execution and implementation of all the projects and
programmes in ECER. They have all shown a high degree of enthusiasm and passion for
the progress that has been targeted for ECER. Their energy continues to drive forward the
ECER, its economy and the wellbeing of its people.
I must also express our special thanks to all returning PETRONAS staff who have been
seconded to ECERDC for their outstanding service and invaluable contribution to the Council.
To everyone of you, I extend my warmest appreciation.

Dato Jebasingam Issace John

ECERDC 2010 ANNUAL REPORT 17

Council Members

SEATED:
1. Y.A.B Dato Sri Mohd Najib bin Tun Haji Abdul Razak
Prime Minister of Malaysia, Chairman of ECERDC
2. Y.A.B. Tan Sri Dato Haji Muhyiddin bin Mohd Yassin
Deputy Prime Minister

10

11

STANDING FROM LEFT:


3. Y. Bhg. Tan Sri Dato Lee Shin Cheng
Group Executive Chairman, IOI Group of Companies
4. Y.A.B. Dato Haji Nik Abdul Aziz bin Haji Nik Mat
Menteri Besar Kelantan
5. Y.A.B. Dato Sri DiRaja Haji Adnan bin Haji Yaakob
Menteri Besar Pahang
6. Y.A.B. Dato Seri Ahmad bin Said
Menteri Besar Terengganu
7. Y.A.B. Dato Haji Abdul Ghani bin Othman
Menteri Besar Johor
8. Y. Bhg. Dato Shamsul Azhar bin Abbas
President & Chief Executive Officer
Petroliam Nasional Berhad (PETRONAS)
9. Y.B. Tan Sri Nor Mohamed bin Yakcop
Minister in the Prime Ministers Department
10. Y.B. Dato Seri Ahmad Husni bin Mohamad Hanadzlah
Minister of Finance II
11. Y. Bhg. Tan Sri Mohd Sidek bin Haji Hassan
Chief Secretary to the Government

Audit Committee

SEATED:
1. Y. Bhg. Tan Sri Dato Lee Shin Cheng
Group Executive Chairman, IOI Group of Companies
2. Y. Bhg. Dato Shamsul Azhar bin Abbas
President & Chief Executive Officer
Petroliam Nasional Berhad (PETRONAS)
STANDING FROM LEFT:
3. Aisha binti Abdul Manaf
(Secretary to the Audit Committee)
Senior Manager Internal Audit ECERDC
4. Y. Bhg. Datuk Shukry bin Haji Mohd Salleh
Director General
Coordination & Implementation Unit
Prime Ministers Department
5. Y. Bhg. Datuk Dr. Rahamat Bivi binti Yusoff
Deputy Secretary General of the Treasury
(Systems & Control), Ministry of Finance

Y. Bhg. Datuk Dr Rahamat Bivi binti Yusoff was appointed as the Audit Committee member
effective 21st March 2011, having succeeded Y. Bhg. Dato Puteh Rukiah Bt Abdul Majid who
retired on 20th March 2011.

ECERDC Organisational Structure

ECER Development Council


Council Members
Kelantan
ICC

Tganu
ICC

Pahang
ICC

Johor
ICC

Audit Committee

Chief
Executive
Officer

Industry Expert
Panel

CEOs Office
State Office

Legal
Audit
Council
Secretariat
Risk

Kelantan
Terengganu
Pahang

Management
Committee

General
Manager

General
Manager

General
Manager

General
Manager

General
Manager

General
Manager

General
Manager

General
Manager

General
Manager

Business
Development

Infrastructure

Agriculture

Social
Development

Property,
Tourism & Mfg

IM & SEZ

Corporate
Communications

Finance

HR &
Administration

22 ECERDC 2010 ANNUAL REPORT

Management Committee

SEATED:
ECERDC 2010 ANNUAL REPORT 23

1. Syed Zikiri bin Syed Hassan Shahabudin


General Manager, Agriculture Division
2. Y. Bhg. Dato Jebasingam Issace John
Chief Executive Officer
3. Zamri bin Ahmad
General Manager
Property, Tourism & Manufacturing Division
4. Zulkifli bin Yaacob
General Manager
Social Development Division

10

11

12

13

14

15

STANDING FROM LEFT:


5. Mazlan bin Sharuddin
General Manager, Pahang Office
6. Mohd Zamzuri bin Mohd Yusoff
General Manager, Finance Division
7. Arizan bin Arifin
Senior Manager, Infrastructure Division
8. Ravindran Raman Kutty
General Manager,
Corporate Communications Division
9. Hayazim bin Daud
(Secretary to the Management Committee)
Senior Manager, Council Secretariat
10. Ragu Sampasivam
General Manager, Business Development

11. Ahmad Fuad Sulaiman



General Manager, Terengganu Office
12. Husnin bin Othman

General Manager, Kelantan Office
13. Mohd Nasir bin Nik Salleh

General Manager, Human Resources

& Administration
14. Farid Zaineddin bin Abdul Hamid

General Manager

Investment Management & SEZ
15. Kauthar binti Ali

Senior Legal Counsel

Nik Mohd Nasir bin Nik Salleh was appointed as the Management Committee
Member effective 16 December 2010, having succeeded Dzalina binti Abd Manan
who resigned on 31 December 2010. Ravindran Raman Kutty was appointed as
the Management Committee Member effective 6 January 2011, having succeeded
Ruziah Azdi binti Abd Rahman who resigned on 31 December 2010. Arizan bin
Ariffin was appointed as the Management Committee Member effective 9 March
2011, having succeeded Sallehuddin bin Hamzah who resigned on 31 January
2011. Hayazim bin Daud was appointed as the Management Committee Member
effective 13 January 2011, having succeeded Raja Zera binti Raja Zaib Shah
who resigned on 31 December 2010. Ragu Sampasivam was appointed as the
Management Committee Member effective 4 November 2010, having succeeded
Akmal Arief bin Mohamed Fauzi who resigned in October 2010. Husnin bin Othman
was appointed as the Management Committee Member effective 1 November
2010, having succeeded Sakim bin Rosdi who resigned in September 2010. Farid
Zaineddin bin Abdul Hamid was appointed as the Management Committee Member
effective 16 February 2011, having succeeded Zulfiqar bin Zainuddin who resigned
in November 2010.

ECER: Delivering Transformation


The East Coast Economic Region Development Council (ECERDC) is a statutory body established under
an Act of Parliament, the East Coast Economic Region Development Council Act 2008 (Act 688), to drive
the implementation projects and key programmes identified in the ECER Masterplan.
The ECERDC is empowered to provide for the proper direction, policies and strategies in relation to
the development within the East Coast Economic Region (ECER). The Council is also empowered to
provide for coordination between Government entities in the promotion of trade, investment, tourism and
development within the ECER.
The momentum of development in the East Coast Economic Region (ECER) of Malaysia continues to be
seen during the year under review.
Comprising the states of Kelantan, Terengganu, Pahang and the district of Mersing in Johor, ECER is now
emerging as a distinctive, dynamic and competitive destination for investments, attracting both local and
international investors.
VISION
ECER is steadily transforming itself into a vibrant investment destination and key exporter of resource-based and manufactured
products, equipped with modern infrastructure and logistics.
The Region covers 51% of the land area of Peninsular Malaysia, with a population of 4.3 million people as of 2010 or 15.2% of
the total national population.
ECERs strategic position on the East Coast of the Peninsula makes it the ideal destination for investors who seek to reach out
to the thriving markets of Asia Pacific, which has a combined population of 2 billion.
The development of ECER is guided by a well-defined vision that will serve as a basis for the formulation of mission and
strategies. ECER is envisioned to become a developed region by 2020 and this vision runs parallel with the Governments
Economic Transformation Programme (ETP) which aims to transform Malaysia into a high-income nation by 2020.
To drive the implementation of projects and programmes identified in the ECER Master Plan, the ECER Development Council
(ECERDC) was established in 2008. ECERDC is chaired by the Prime Minister of Malaysia, Dato Sri Mohd Najib Tun Abdul
Razak, with members comprising the Chief Ministers of the ECER states, high-level Federal and State Government officials, and
representatives from the private sector.
All of the ECERs clusters support the 12 National Key Economic Areas (NKEAs) and are implemented in the spirit of the New
Economic Model (NEM). Similar to the Governments Entry Point Projects (EPP), the development in ECER places great emphasis
on private investment-led projects that will contribute significantly to the Gross National Income (GNI).
The growth in ECER will be accelerated by the development within the ECER Special Economic Zone (ECER SEZ), which is
designed to fast track investment in a zone of concentrated economic development. ECER SEZ is located at the nucleus of
ECER, the 25 km by 140 km strip that extends from Kertih in Terengganu to Pekan in Pahang.
The ECER Master Plan has set the foundation for the strategies, programmes and projects that will position ECER as a developed
region by the year 2020. The Region is set to prosper with an increase in population to 4.3 million and with new jobs growing by
560,000 to a projected total of 1.92 million employment opportunities.
24 ECERDC 2010 ANNUAL REPORT

MISSION
The drive to draw investments into ECER is more than just an economic strategy. Underlying
it is a vital and transforming objective: that of eradicating poverty among the people of the
Region, generating higher household incomes through sustainable livelihoods, as well as
increasing job and entrepreneurial opportunities.
Economic growth in the Region will be mainly spurred by five key economic clusters:
Tourism, Oil, Gas & Petrochemical, Manufacturing, Agriculture and Education. These
clusters will be supported by developments in Social and Human Capital, Transportation,
Infrastructure, Property and Environment.

OVERVIEW OF ECER STATES


Drawing upon the uniqueness and strengths of Kelantan, Terengganu, Pahang and the
district of Mersing in Johor has allowed for development in the Region to take on a
synergistic approach that makes the most of existing resources and capabilities.

Kelantan
Kelantans border with Thailand makes it the ideal cross-border trading and tourism centre
for the East Coast, along with the trading heritage of the people of Kelantan.
Cross-border initiatives through the Indonesia-Malaysia-Thailand Growth Triangle
(IMT-GT) and the Joint Development Strategy (JDS) will further enhance development in
the State. The IMT-GT and JDS initiatives will help increase the flow of raw materials from
Thailand, thus supporting downstream industries in ECER especially in the ECER Special
Economic Zone (SEZ) and the Cross-Border KDA. They will also enhance the Kota Bharu
City Centre development and strengthen the citys role in cross-border trade.
The Kelantanese people are also a key resource for the State, an asset that is given added
value with the establishment of a major education hub in Kota Bharu-Bachok, comprising
Universiti Malaysia Kelantan (UMK), Universiti Teknologi MARA (UiTM) in Machang and
Universiti Sains Malaysias medical campus. Kelantan is also home to various training
institutes and colleges such as Institut Teknologi Tun Abdul Razak Kota Bharu, Kolej PolyTech MARA, Kolej Teknologi Cosmopoint and Kolej Teknologi Darulnaim.
The states long history of agriculture is the foundation for a variety of agro-based activities,
which will incorporate large-scale farming and modern technologies. A key agriculture
project in the State would be the second phase of ECERs Herbal and Biotechnology
Cluster development that will be undertaken in Rantau Manis, Gua Musang.

ECERDC 2010 ANNUAL REPORT 25

Large-scale pineapple plantations will also be carried out in Rompin, incorporating the
entire value chain of pineapple production. In terms of poverty eradication, Pahang
currently boasts three sites for ECERDCs Pekan Agropolitan projects, namely Batu 8 in
Mukim Lepar, Runchang and Tanjung Batu.
Education is a high priority in the State and Pahang is home to established tertiary
institutions such as Universiti Malaysia Pahang (UMP), the International Islamic Universiti
Malaysia (UIAM), Universiti Teknologi MARA (UiTM) Jengka campus and Universiti Tenaga
Nasional (UNITEN Pahang) in Muadzam Shah.
In tandem with education, skills training is equally important in meeting the needs of
businesses that are being established in ECER. A number of training establishments help
to fulfil the need for trained staff and they include the Pahang Skills Development Centre
Kuantan (PSDC Kuantan), Cosmopoint College, MARA Professional College, MARA PolyTech College and Kolej Shahputra.

Mersing, Johor
As part of its poverty eradication programme, ECERDC is also implementing the South Kelantan Agropolitan (SKA) project in
Gua Musang. The project will eventually see the building of 3,000 new homes for poor families and the development of oil palm
plantations over 9,900 hectares of land that will be their primary source of income.
Manufacturing is another cluster represented in Kelantan and a key project in this area is the Pasir Mas Halal Park, which will be
focusing on the manufacturing of Halal food products.
Kelantan is also renowned for its skilled master craftsmen and the production of quality handicraft such as silverware and wood
carving, which will add to the variety of tourism attractions in the state.

Terengganu
Terengganu is blessed with beautiful islands and stunning beaches that have naturally made tourism a key cluster in the Region.
Islands such as Pulau Perhentian, Pulau Redang and Pulau Tenggol have already been well-known among both local and
international tourists and the State also boasts breathtaking mainland coastal beaches like the ones found in Tanjung Jara, Teluk
Bidara, Kampung Penarik and Kijal-Kemasik.
The State capital will play a leading role as an international tourism gateway through the development of the Kuala Terengganu
City Centre (KTCC) as a Heritage Waterfront City.
Terengganu is also the leading oil, gas and petrochemical hub in Peninsular Malaysia. In order to promote the development
of midstream and downstream oil and gas activities, ECERDC has established the Kertih Polymer Park (KPP) which would
leverage on the readily available feedstock from the nearby Gebeng Integrated Petrochemical Complex and Kertih Integrated
Petrochemical Complex.
Livestock production is also being developed in Terengganu through the Kuala Berang Goat Breeding & Innovation Centre and
the Goat Multiplier Farm in Kuala Berang, as well as the Goat Commercial Farm in Telaga Papan.
Human capital development is a priority in the state through tertiary institutions including Universiti Sultan Zainal Abidin, Universiti
Malaysia Terengganu (UMT), Kuala Terengganu Polytechnic and Dungun Polytechnic, as well as the establishment of the Taman
Ilmu (Knowledge Park) in Besut. Terengganu is also home to various private colleges such as Pusat Teknologi dan Pengajian
Lanjutan (PTPL) Kuala Terengganu, Kolej Teknologi Bestari and Institut Teknologi PETRONAS.

Pahang
Pahang is shaping up as a major industrial and logistics hub in the Region, serving the petrochemical, palm oil, automotive and
container markets. The States location also allows it to play the role of an industrial and manufacturing zone, serving the entire
Far East and Asia Pacific region.
The State is also the location of ECER SEZ, the catalyst of economic growth within the Region. Within ECER SEZ, a Palm Oil Industrial
Cluster (POIC) is being developed near Kuantan Port City (KPC), specialising in downstream palm oil activities. The Pekan Automotive
Park (PAP), also located in ECER SEZ, is fulfilling its potential as the manufacturing and assembly hub for motor vehicles in the Region.
An Integrated Halal Park will also be developed in Gambang, focusing on Halal food and non-food products.
A key project in Pahang is the development of KPC, which involves the expansion of Kuantan Port and the development of new
areas for industries, residences, commercial, tourism, institutional and open spaces.
Kuantan Port is being upgraded to a deepwater harbour and is poised to become a centre for manufacturing and commercial
services, while also serving as a regional distribution and international procurement centre.
In the agriculture cluster, cattle production will be implemented starting with the first-tier of Nucleus Farm in Muadzam Shah,
followed by the second-tier of Multiplier Farm in Ulu Lepar and finally, the third-tier of Commercial Farm that will be integrated
in oil palm and pineapple plantations.
26 ECERDC 2010 ANNUAL REPORT

The Mersing district has traditionally been a transit point for tourists visiting the nearby
Pulau Tioman and the Mersing group of islands such as Pulau Besar, Pulau Rawa, Pulau
Aur, Pulau Sibu and Pulau Pemanggil, as well as the Endau-Rompin National Park.
It will now be developed as an important mainland coastal tourism destination in its own
right with highly developed tourist facilities.
ECERDC has initiated two pilot projects in Mersing under its ECER Entrepreneurship
Development Programme (EEDP) to increase the involvement of the Bumiputera
Commercial and Industrial Community (BCIC) and Small- and Medium Industries (SMIs)
in the Region. The pilot projects consist of the Vendor Development Programme-Sewing
Project and Boat Building and Repair Centre (BBRC).

ECER: DELIVERING TRANSFORMATION


As the Region steadily transforms itself into a vibrant investment destination, the
development within ECER will continue to be people-centric. ECERDC will ensure that
all the projects in the Region are effectively implemented and will help create new job
and entrepreneurial opportunities for the local populace, which will translate into higher
household income.

As of December 2010,
a total of

67

ECERDC-led projects
approved by the
Government have been
carried out in ECER at
various stages.

ECER will be developed via a cluster development approach, whereby six Key
Development Areas (KDAs) have already been identified for this purpose. The KDAs are
the ECER SEZ, Tumpat-Kota Bharu-Bachok-Tok Bali-Besut Cross Border Development,
Kuala Terengganu City Centre (KTCC)-Kenyir-Dungun Triangle, Mersing-Rompin KDA,
Gua Musang-Kuala Lipis KDA and Bentong-Raub KDA.
The transformation that is sweeping across the Region comes from the various projects
that have been identified under the 9th Malaysia Plan (9MP) and will be continued in the
10th Malaysia Plan. As of December 2010, a total of 67 ECERDC-led projects approved by
the Government have been implemented in ECER at various stages and they include the
Kertih Polymer Park (KPP), Pekan Automotive Park (PAP) and Palm Oil Industrial Cluster
(POIC), among others.
These projects are planned and coordinated in a focused way to develop the Region
within the larger objectives of the ECER Master Plan as well as the Governments ETP.
Cluster projects will enjoy the synergies of the major logistics infrastructure that has been
planned, including the development of Kuantan Port City (KPC) that will turn ECER SEZ
into a manufacturing and commercial and services hub, as well as a regional distribution
and international procurement centre.
To ensure that ECERs vision will be realised as planned, ECERDC will continue to
intensify its effort in attracting more inbound investments into the Region. In line with
the Governments aspirations, all ECER projects will be private-sector driven. Besides
private investments, enterprises also have the opportunity to become Anchor Companies
for ECERDC-led projects, providing a win-win opportunity for all parties involved.
Backed by the strong progress achieved by the Region to date, the delivery of
transformation will continue to take place in ECER, benefiting not only the local populace,
but also the nation as a whole.

ECERDC 2010 ANNUAL REPORT 27

TOURISM
28 ECERDC 2010 ANNUAL REPORT

ECERDCs tourism initiatives cover six


distinct segments, namely Mainland
Coastal Tourism, Culture & Heritage
Tourism, Ecotourism, Urban Tourism,
Cross-Border Tourism and Sustainable
Island Tourism.

ECERDC 2010 ANNUAL REPORT 29

Tourism
The Kuala Terengganu City
Centre development is
expected to create up to
82,591 jobs by 2020, with
an estimated investment
value of

Blessed with unspoilt beaches, coral-ringed islands and lush rainforests, the East Coast is internationally
acknowledged as one of the most unique tourism destinations in the world.
The richness of ECERs natural assets has made tourism one of the key drivers of growth in the Region,
offering vast potential for investors and employment opportunities to the locals.
Mainland Coastal Tourism

RM

Cherating Mainland Coastal Tourism


Home to the world-famous Club Med resort, Cherating is well-known for its beautiful beaches and idyllic, laidback lifestyle.
Cherating Mainland Coastal Tourism Development has been identified as one of the key tourism projects in the Region and
ECERDC aims to develop the area into a unique and sustainable coastal tourism destination.

billion

4.1

for the development of


Muara Utara and Muara
Selatan.

The Business Strategy and Implementation Plan (BSIP) study for Cherating Mainland Coastal Tourism Development is still
ongoing and has been targeted to be completed by the end of June 2011. Concurrently, ECERDC is also undertaking the detailed
design for infrastructure works at Chendor area in Cherating.
All the village charms of Cherating will be preserved, giving tourists the unique experience of participating in a lifestyle that few
can call their own. When it is completed by 2020, the project will generate 3,000 jobs with RM900 million worth of investments.
Pantai Sepat Mainland Coastal Tourism
The BSIP for Pantai Sepat Mainland Coastal Tourism project in Pahang was completed in November 2010. This will be followed
by infrastructure works, including rehabilitation to contain erosion of the beach. The project stands to benefit from the rustic
lifestyle and wetlands in the vicinity, which are priceless assets in shaping a unique tourism destination.
The developments in Pantai Sepat will include the construction of hotels, convention centres, a golf course, amenities and
facilities of a new township, as well as an eco-centre and nature reserve for wildlife education and ecotourism activities.
Once the project is fully completed by 2020, it would have an investment value of RM700 million and create 2,677 jobs and
support entrepreneurship opportunities.
Teluk Bidara Mainland Costal Tourism
The BSIP study for Teluk Bidara Mainland Coastal Tourism in Dungun, Terengganu was completed in November 2010 and
infrastructure works will follow suit, beginning with beach rehabilitation in order to preserve one of its strongest attractions.
The project is an integrated one, with mixed development that combines boutique beach resorts with the charms of nearby
villages to draw both domestic as well as foreign tourists. By 2020, it would achieve an investment value of RM320 million and
create up to 5,448 jobs.
Bandar Dungun Mainland Coastal Tourism
Another tourism development in Terengganu is the Bandar Dungun Mainland Coastal Tourism project. The BSIP study for the
project was completed in December 2010, paving the way for the development of the area as a centre for commercial and tourism
activities, with a niche as a seafood town. When the project is fully completed by 2020, it will have created up to 2,000 jobs.
Pulau Besar/Pantai Kampung Penarik Mainland Coastal Tourism
The Mainland Coastal Tourism development in Pulau Besar/Pantai Kampung Penarik will be integrated with the Setiu Wetlands
State Park. The BSIP study is in the final stages and will be completed by June 2011.
These projects will have a combined investment value of RM2 billion and will create up to 8,575 jobs by 2020.
30 ECERDC 2010 ANNUAL REPORT

3D perspective of Kuala Terengganu City Centre.

URBAN TOURISM
Kuala Terengganu City Centre (KTCC)
The Kuala Terengganu City Centre (KTCC) development will be the catalyst project that will
boost the tourism sector in Terengganu in particular and ECER in general. Hailed as the key
tourism gateway to the East Coast, the KTCC development is expected to create jobs for
up to 82,591 people by 2020.
During the year under review, the Master Plan study was ongoing on the KTCC project. The
study area for KTCC Integrated Master Plan covers an area of a 7 km radius from the Sungai
Terengganu estuary, whereby five (5) Key Development Areas for the project have already
been identified, namely, Muara Utara, Muara Selatan, Pulau Warisan, Kg. Ladang/Tanjung
and the Corniche Waterfront.
Muara Utara and Muara Selatan are reclaimed lands located near the estuary of Sungai
Terengganu and these areas have been identified as the expansion of the current citys
Central Business District due to their strategic location which is facing the South China Sea.
The development of Muara Utara and Muara Selatan is expected to have an investment
value of RM4.1 billion.
ECERDC 2010 ANNUAL REPORT 31

CULTURE & HERITAGE TOURISM


Pekan Heritage Tourism Development
Culture and heritage tourism in Pekan, Pahang is set to take off with
the completion of the BSIP for the project in December 2010. The
royal town of Pekan will be developed as a heritage site through the
rehabilitation of historical buildings and riverfront areas. The entire
project will be completed in stages, culminating in 2020, by which time
it would have created 935 jobs.

ECOTOURISM
This segment of tourism is increasingly sought after as more and
more developed countries turn into urban environments. By contrast,
ecotourism is a diminishing asset globally and thus makes ECER one of
the few areas in the world to offer this unique experience.
Tasik Chini Biosphere Reserve
Recognised by UNESCO as the first biosphere reserve in Malaysia,
Tasik Chini has been identified as one of the ecotourism attractions in
ECER which will incorporate awareness programmes on environment
conservation for the benefit of the local residents and future generations.
In 2010, a Strategic Implementation Plan (SIP) study was carried out
for the Tasik Chini State Park. Land surveying works and earth studies
for Tasik Chini were completed in the same year, while rehabilitation
and conservation studies of the lake are currently being undertaken by
UKM-Pusat Penyelidikan Tasik Chini.

alike, who also took advantage of the various interesting programmes held in conjunction
with the competition, including displays of Terengganus splendid arts and heritage.
Royal Pahang Billfish International Challenge
The Royal Pahang Billfish International Challenge is an annual off-shore fishing competition
initiated in 2004 by the Joran Unit of Berita Harian, a popular Malay language newspaper.
In 2010, the competition was held from 6 August to 8 August off the town and serene
beaches of Kuala Rompin in Pahang, about 125 km south of Kuantan.
One of the objectives of the Royal Pahang Billfish International Challenge is to attract tourists
to the state of Pahang, especially those who seek adventure and eco-friendly sports.
The Royal Pahang Billfish International Challenge takes advantage of the active migration
season of the billfish, such as marlin and sailfish, which pass through the Rompin area from
the northern hemisphere to their destination in Australia, between March and September.

LIST OF COMPLETED PROJECTS


1.

2.

Setiu Wetlands State Park


Setiu Wetlands State Park will serve as the main ecotourism attraction
in the Setiu area, complementing the overall development in Pulau
Besar/Setiu Penarik.

3D illustration of the proposed refurbishment of Muzium Sultan Abu


Bakar in Pekan.

The Kampung Penarik Mainland Coastal Tourism Development and


the Setiu Wetlands State Park have the potential as a sustainable
economic catalyst through creation of innovative tourism activities. The
tourism activities will be packaged and promoted with an enforceable
Management Plan for Setiu Wetlands State Park, which has been
identified as an environmental and economic asset for the state.

The study area identified and recommended for this project is 1,025 square km (102,500 ha) in size. Three categories of internal
management zones were created for Setiu State Park, namely, Strict Protection Zone which covers sites of highest biodiversity
value in the park, River Restoration Zone which focuses on rehabilitation of the largest rivers in the park, and Sustainable Use
Zone which identifies areas for sustainable economic development and community use.

The Malayan Tiger theme makes a connection with natural landscape and wildlife and suggests a journey that entails the many
different eco-adventure experiences that can be found along the trail.

HOMESTAY PROGRAMME
The Homestay Programme is another tourism initiative in ECER which capitalises on the Regions rich and unique culture. The
main objective of the Homestay Programme in ECER is to enhance the economic, social and cultural potential of the homestay/
kampung-stay concept within the Region.

Hallmark events play an important role in ECERs tourism cluster as they involve the hosting of specific, focused events to attract
an international audience to ECER.

Dubbed the Formula One of Sailing, the Monsoon Cup Terengganu is one of the most prestigious sailing events in the world. In 2010,
it was held from November 30 to December 5 at Pulau Duyung, Terengganu. The event attracted both local and foreign tourists
32 ECERDC 2010 ANNUAL REPORT

BSIP Study
Started on 25 May 2009 and completed on 6 Oct 2010.

Strategic Implementation Plan


for Tasik Chini State Park,
Pahang.

SIP Study
Started on 28 Jan 2010 with expected completion on
30 June 2011.

Earthworks & Infrastructure Works


Phase 1A
Started on 14 Oct 2010 with expected completion on
14 Oct 2011.

3.

Business Strategy, Marketing


and Implementation Plan
for Coastal Tourism Pantai
Sepat, Kuantan, Pahang.

BSIP Study
Started on 26 Feb 2009 and completed on 3 Nov 2009

4.

Business Strategy, Marketing


and Implementation Plan for
Cherating Coastal Tourism,
Pahang.

BSIP Study
Started on 11 Sept 2009 with expected completion on
30 June 2011.

5.

Business Strategy, Marketing


and Implementation Plan for
Teluk Bidara, Coastal Tourism,
Terengganu.

BSIP Study
Started on 10 March 2009 and completed on 28 April 2010.

6.

Business Strategy, Marketing


and Implementation Plan for
the Bandar Dungun Mainland
Coastal Tourism, Terengganu.

BSIP Study
Started on 07 Sept 2009 with expected completion on
31 March 2011.

7.

Business Strategy, Marketing


and Implementation Plan
for Coastal Tourism Pantai
Kampung Penarik and Setiu
Wetlands State Park.

BSIP Study
Started on 25 Aug 2009 with expected completion on
31 July 2011.

8.

Business Strategy, Marketing


and Implementation Plan
for Eco-Adventure LanchangKuala Lipis-Gua MusangKuala Krai.

BSIP Study
Started on 12 March 2010 with expected completion on
30 June 2011.

9.

Integrated
Environment
Management Plan for Lojing,
Highland, Kelantan.

IEMP Study
Started on 7 April 2010 with expected completion on
31 July 2011.

The Region has played host to exciting hallmark events, which include the Monsoon Cup at Pulau Duyung Terengganu and the
Royal Pahang Billfish International Challenge in Rompin.
Monsoon Cup

Business Strategy, Marketing


and Implementation Plan
for Pekan Heritage Tourism
Development, Pahang.

Contractor was appointed in 29 Sept 2010 and


construction works are on-going.

During the year, the report for ECERs homestay programme has been formally handed over to the Ministry of Tourism in
June 2010 for further implementation. Thirteen existing homestays have been earmarked for upgrading and five new potential
homestays have been identified in the study.

HALLMARK EVENTS

STATUS

Package : Tasik Chini Monitoring Station and Equipment


Started on 21 July 2010 and completed 10 Feb 2011
Package : Rehabilitation and Conservation Tasik Chini
Started on 30 Sept 2010 with expected completion on
29 Oct 2011.

Malaysia Tiger Trail


ECERDC has also identified the possibility of establishing the Malaysia Tiger Trail as a means to link all the interpretation stories
along the five destination clusters comprising Lanchang, Raub, Kuala Lipis, Gua Musang and Kuala Krai.

PROJECT

ECERDC 2010 ANNUAL REPORT 33

OIL, GAS & PETROCHEMICAL


34 ECERDC 2010 ANNUAL REPORT

Upstream activities in ECERs oil,


gas and petrochemical cluster have
already been well established, due to
the richness of its oil and gas natural
resources. The future direction of the
cluster seeks to expand the activities in
the midstream and downstream sectors
to add more value to existing output.

ECERDC 2010 ANNUAL REPORT 35

Oil, Gas & Petrochemical


The oil, gas and petrochemical cluster in ECER is already well
established, complete with supporting infrastructure and logistics
such as the Kertih Port, Kertih-Kuantan Railway System and
centralised utility facilities to better serve the sector.
At present, there are two major downstream integrated petrochemical complexes in
the Region, namely Kertih Integrated Petrochemical Complex (KIPC) in Terengganu
and Gebeng Integrated Petrochemical Complex (GIPC) in Pahang.
The existence of KIPC and GIPC in ECER provides a distinct advantage for investors
who are interested to venture into midstream and downstream petrochemical
activities in the Region. Realising this, ECERDC has established the Kertih Polymer
Park (KPP) which would leverage on the readily available feedstock from GIPC and
KIPC which are located nearby.
Kertih Polymer Park
A key initiative in ECERs downstream petrochemical industry is the Kertih Polymer
Park (KPP), the first of its kind in the country. Located within the PETRONAS Petroleum
Industry Complex (PPIC), KPP will create employment and entrepreneurship
opportunities, as well as generate demand for other ancillary services. It will also help
attract domestic and foreign investments in plastics and plastics-related industries.

The plug-and-play Park is expected to create 10,500 new job


opportunities and draw up to 70 potential investors, with total
estimated investments worth RM2.6 billion.
More exciting developments are expected to take place in
KPP in the near future as it continues to attract the interest of
global investors such as CJ-Arkema, a South Korean-French
joint venture firm, and Natureworks of USA.

Kertih Polymer Park is


expected to create

10,500
new job opportunities by 2020.

CJ-Arkema plans to set up the worlds first global-scale methyl


mercaptan integrated bio-methionine plant in Asia and ECER
has been identified as one of the potential locations for the
plant. The project will have a total cost of RM1.98 billion.
Natureworks intends to set up a plant to produce Polytactic
Acid (PLA) through the fermentation method and KPP has
been earmarked as a potential location for the plant. Total
investment cost for the project is estimated at RM1 billion.

KPPs development will be supported by world-class research and development


input from PETRONAS Polymer Technology Centre (PPTC), a market-driven
technology centre which will enhance customer technical services and product
improvement and development for plastics applications.
Notable progress has been made at KPP during the year under review. Land and
infrastructure development works for Phase 1A and 1B of KPP, as well as design
works for Phase 2 of the Park, have already been completed as of 31 December 2010.
Companies operating at KPP include Hi Essence Cable Sdn Bhd and MIE Copper
Sdn Bhd, while two other investors have committed a total of RM165 million to
establish operations here.

36 ECERDC 2010 ANNUAL REPORT

ECERDC 2010 ANNUAL REPORT 37

MANUFACTURING
38 ECERDC 2010 ANNUAL REPORT

ECERs manufacturing projects will


have a significant impact on the Region,
creating a hub of industrial development
and transforming the lives of the locals
by creating new employment and
entrepreneurial opportunities.

ECERDC 2010 ANNUAL REPORT 39

Manufacturing
More industry players are expected to establish their presence
in ECERs manufacturing cluster as they take advantage of the
resources and raw materials that are readily available in the Region.

The development of the Central Marketing Complex (CMC) for PAP commenced in July
2010. Upon completion, the CMC will act as the marketing and one-stop centre for PAP,
meeting the needs and requirements of existing and future investors.

ECER manufacturing initiatives are mainly focused on high-value added activities,


covering the whole value chain of upstream, midstream and downstream
enterprises within the industries.

ECER Halal Parks


ECERDCs Halal Parks in Pasir Mas and Gambang were planned in response to the
increasing global demand for Halal products. Pasir Mas Halal Parks main focus will be on
the food industry, while Gambang Halal Park focuses on both food and non-food industries.

Kertih Polymer Park

The infrastructure design for Gambang Halal Park in Pahang was completed in July 2010,
followed by infrastructure and earthworks which commenced in November 2010. The Park
is expected to create new jobs for up to 12,455 people and draw potential investments
worth more than RM1 billion once fully occupied.

The Kertih Polymer Park (KPP) aims to promote the development of plastics
and plastics-related industries in ECER by deepening the linkages between the
various facilities within the Region and moving up the product value chain.
KPPs development will also be supported by world-class research and
development input from the PETRONAS Polymer Technology Centre (PPTC), a
market-driven technology research and development centre for polymer products
and applications.

The plug-and-play Park is expected to create 10,500 new job opportunities


and draw up to 45-70 potential investors with a total investment value of
RM2.6 billion.

by 2015.

4.45

Located in Kuantan Port City, the Palm Oil


Industrial Cluster (POIC) will allow investors to
take advantage of its proximity to the countrys
major palm oil producing areas and develop
downstream industries yielding consumer
products that are especially tailored for the
export market.

The Pekan Automotive Park (PAP) is envisioned to become a national and regional
hub for car assembly, manufacturing of automotive parts and components, as
well as automotive R&D activities.

40 ECERDC 2010 ANNUAL REPORT

billion

Palm Oil Industrial Cluster

Pekan Automotive Park

The infrastructure design plan for Phase 1 (Package 1) for PAP, Pekan-Peramu,
Pahang was completed in July 2010, followed by infrastructure and earthworks
which commenced in October 2010. It is expected to create new job opportunities
for 10,580 people by 2020 and draw potential investors with a total investment
value amounting to RM4.45 billion by 2015.

RM

The Business Strategy, Marketing and


Implementation Plan for Pasir Mas Halal Park
in Kelantan was also completed in July 2010,
followed by infrastructure and earthworks
in November 2010. The Park is expected to
create 7,093 new jobs and attract potential
investments worth RM600 million when fully
occupied.

All infrastructure and earthworks carried out for Phases 1A and 1B of KPP were
completed in April 2010. A contractor was appointed in August 2010 to undertake
all infrastructure and earthworks for Phase 1C.

ECERDC aims to position PAP as the eco-friendly, first mover in the production
of environmentally-friendly vehicles, which includes electric vehicles, and
related technologies, such as battery suppliers, transportation infrastructure and
renewable energy providers.

The Pekan Automotive Park


(PAP) is expected to create
10,580 new jobs and draw
potential investments worth

Aerial view of Pekan Automotive Park.

Among the promoted sectors for POIC are


surfactant, biodiesel, food, biofertilizer,
animal feedmeal, biomass, phytonutrient,
polyurethane and other downstream products.

ECERDC 2010 ANNUAL REPORT 41

The support services provided at POIC will include bulking facilities, SME Park, and a research and development centre.
The Business Strategy, Marketing and Implementation Plan for the development of POIC was completed in August 2010,
followed by the commencement of infrastructure and earthworks in October the same year. The POIC development is expected
to create up to 8,236 jobs and draw RM1.2 billion worth of potential investments once it runs at full capacity.

LIST OF COMPLETED AND CURRENT PROJECTS


1. Kertih Polymer Park (Phase 1 & 2)
in Lot Q, Kertih, Terengganu

BSIP Study
Completed in 2009
Earthworks & Infrastructure Works
Phase 1A & 1B
Completion in April 2010
Phase 1C
Infrastructure and earthworks started in
August 2010.

2. Pekan Automotive Park in


Pekan-Peramu, Pahang

BSIP Study
Completed in 2009
Earthworks & Infrastructure Works
Central Marketing Complex
Design for CMC completed in January 2010
Contractor was appointed in July and
construction works are on-going (65%
completed)
Construction scheduled to be completed in
April 2011
Phase 2
Design Infrastructure completed in July 2010
Contractor was appointed in September 2010
Earthworks and infrastructure works started
in October 2010 and are on-going. Scheduled
to be completed in April 2012

3. Palm Oil Industrial Cluster (POIC)


in Kuantan Port City, Pahang

BSIP Study
Completed in June 2010
Earthworks & Infrastructure Works
Design Infrastructure completed in July 2010
Contractor was appointed in September 2010
Earthworks and Infrastructure started in
October 2010 and are on-going. Scheduled
to be completed in April 2012

4. Gambang Halal Park, Pahang and


Pasir Mas Halal Park, Kelantan

BSIP Study
On-going; Draft Final Stage
Earthworks & Infrastructure Works
Pasir Mas
Design Infrastructure completed in July 2010
Contractor was appointed in October 2010
Earthworks and Infra started in November
2010 and are on-going. Scheduled to be
completed in January 2012
Gambang
Design (Infra) completed in July 2010
Contractor was appointed in October 2010
Earthworks and Infra started in November
2010 and are on-going. Schedulde to be
completed in January 2012

5. Development of Kenaf Industry

BSIP Study
On-going; Draft Final Report
Scheduled to be completed in January 2011
Report will be handed over to LKTN upon
completion

6. Handicraft Cluster

BSIP Study
Completed in November 2010

7. Development of Heavy Industry


and Boat Building & Repair
Industry

BSIP Study
On-going (96% completed)
Scheduled to be completed in January 2010

8. Mixed Industrial Park,


Bentong, Pahang

BSIP Study
Completed in June 2010

9. Development of Free Zones

BSIP Study
On-going; Interim Report 2

Boat Building & Repair Centre, Kemaman


During the year under review, ECERDC undertook a BSIP Report on the Boat Building & Repair Industry in Kemaman, Terengganu.
Full development of the industry is expected to create new jobs for up to 6,000 people with potential investments worth RM3.5 billion.
Kemaman Heavy Industrial Park
The Kemaman Heavy Industrial Park in Terengganu will focus on the development of heavy industries, particularly iron and steel
making, as well as downstream activities with port linkages.
In 2010, ECERDC undertook a BSIP study on the Kemaman Heavy Industrial Park. Upon completion, the Park is expected to
create new jobs for up to 28,400 people and attract potential investments worth RM1.57 billion.
Bentong Mixed Industrial Park
It will be built around mixed industrial development, especially in the promoted sectors of machinery and equipment, bioproducts, as well as high technology manufacturing of industrial and consumer electronics.
The BSIP study for Bentong Mixed Industrial Park was also completed during the year under review. Upon completion, the Park
is expected to create job opportunities for 27,505 people with RM1.56 billion worth of potential investments.
Kenaf Industry Development
ECERDC also initiated a BSIP survey pertaining to the development of the Kenaf industry in 2010. Upon completion, the National
Kenaf and Tobacco Board (LKTN) will implement the development of the Kenaf industry based on the report outcome.
ECER Handicrafts Industry Programme
In 2010, the BSIP study for the Handicrafts Industry Programme in ECER was also completed. The study covered a comprehensive
and detailed evaluation of the existing handicraft industries in ECER, as well as proposed programmes to bring the local handicraft
industry to an international level.

Development of the boat building and repair industry.

42 ECERDC 2010 ANNUAL REPORT

Handicraft products in the ECER.

ECERDC 2010 ANNUAL REPORT 43

AGRICULTURE
44 ECERDC 2010 ANNUAL REPORT

Agriculture projects in ECER span across


the livestock, herbal, crops and fisheries
clusters, and are closely linked to
ECERDCs Agropolitan projects.

ECERDC 2010 ANNUAL REPORT 45

Agriculture
Agriculture continues to move ahead as one of the
key clusters that will drive economic growth in ECER.
This involves the strategies of large-scale commercial
farming, the use of modern technologies, wider
participation by the private sector and a holistic
approach in drawing upon the full value chain within
the industry.

Upon completion and operationalisation of all three


tiers in the dairy cattle development plan by 2020, up to
1,000 people would be employed and 136 million litres
of fresh milk produced for domestic consumption.
Boer Goats
In 2010, earthworks began for the Kuala Berang Goat
Breeding & Innovation Centre in Terengganu. Two
main components will complement each other in the
implementation of first-tier and second-tier of goat
production programme, namely, Nucleus Farm and
Multiplier Farms.

During the year under review, all categories in the Agriculture


cluster recorded progress, ranging from Business Strategy and
Implementation Plan (BSIP) studies to design development,
construction of facilities and completion of projects.

LIVESTOCK
Dairy Cattle
The development plan for the dairy cattle project in ECER has been
well-implemented and executed in the year 2010. The first-tier of
Nucleus Farm planned at the Muadzam Shah Cattle Research &
Innovation Centre commenced construction in 2010. The centre
will carry out structured breeding programmes to produce high
performance dairy cattle breeds, catering to the local farmers
and agro-entrepreneurs. The local farmers will also be educated
on best industry practices and how to commercialise the findings
of applied research in their farming activities.

Dairy cattle to be bred at the Muadzam Shah Cattle Research & Innovation Centre.

The Kuala Berang Dairy


Commercial Farm
is expected to produce

136
million

litres of fresh milk for


domestic consumption
by 2020.

The nucleus farm will be commercially operated and


managed by the Anchor Company which will conduct
an extensive breeding programme for goats and sheep.
It will be equipped with several commercial breeding
and breed production physical structures including fully
intensive goat sheds, multiplier farms, breeding labs,
training and technology transfer complex, and an R&D
complex.
To ensure the sustainability of the project, the
Department of Veterinary Services (DVS) and MARDI
will collaborate in providing technical inputs and
expertise for the project. Upon completion, the centre
will produce 5,625 head of breeder goats and sheep by
the year 2015, with the numbers increasing substantially
over the years.

The centre is expected to produce 1,200 heads of cattle breeder


by the year 2015. The project is undertaken in collaboration
with Malaysia Agricultural Research & Development Institute
(MARDI), a lead agency in livestock research and development
under the Ministry of Agriculture (MOA).

The construction work for the Ulu Tersat Multiplier


Farm and Telaga Papan Commercial Farm has been
completed in 2010. The farms are commercially
operated and managed by Terengganu Agrotech
Development Corporation (TADC), which will initiate
the breeding programme and spearhead the goat
production cluster in Terengganu.

To expedite the multiplication of good dairy cattle breeds in the


country, two Multiplier Farms have been planned for commercial
operations. The Kuala Berang Dairy Multiplier Farm in Terengganu
and Tanah Merah Dairy Multiplier Farm in Kelantan will represent
the second- and third-tier phases of the Nucleus Farm in the
Muadzam Shah Cattle Research & Innovation Centre.
Boer goats at the Kuala Berang Goat Breeding & Innovation Centre.

46 ECERDC 2010 ANNUAL REPORT

ECERDC 2010 ANNUAL REPORT 47

To accelerate the breeding programme, ECERDC has provided 522


head of full blood Boer goats and 1,442 head of crossbred Boer
goats for the programme in 2010. The programme is also being
integrated with the commercial farm in Besut-Setiu Agropolitan to
further leverage on the extended value chain activities to uplift the
income of Agropolitan participants.
Poultry
The Schematic Design development for Maran Fully Integrated
Poultry Production Park was initiated in 2010. The Park will cater to
the entire value chain of the poultry business through the upstream,
midstream and downstream phases.
Upon its completion in 2014, it will be commercially operated and
managed by the appointed Anchor Company with an estimated
private investment value of RM250 million. This Poultry Production
Park will produce 50,000 metric tonnes of processed poultry
products mainly aimed for the halal global export market. It will also
create 520 employment opportunities and offer 25 entrepreneur
schemes for local contract farmers arrangement.
Misai Kucing (Orthosiphon aristatus).

HERBAL & BIOTECHNOLOGY


The Herbal & Biotechnology Cluster Development initiated by ECERDC has been announced as the first Entry Point Project
(EPP) under the Governments Economic Transformation Programme (ETP) for the Agriculture initiatives.
The BSIP has been completed and ten high value herbal crops have been identified and promoted to be commercialised by the
private sector. It is envisaged that both plantations could attract private investments of RM66 million in upstream and midstream
herbal development.

PROMOTED HERBAL CROPS IN ECER


Tongkat Ali (Eurycoma longifolia)

Hempedu Bumi (Andrographis paniculata)

Kacip Fatimah (Labisia pumila) Mengkudu/Noni (Morinda citrifolia)


Dukung Anak (Phyllanthus niruri)

Misai Kucing (Orthosiphon aristatus)

Halia (Zingiber officinale) Roselle (Hibiscus rosa sabdariffa)


Lemon Myrtle (Backhousia citriodora)

Gaharu/Agarwood (Aquilaria malaccensis)

The primary objective of ECERDCs Herbal & Biotechnology Cluster Development is to promote the commercial production
of local herbs in a sustainable, competitive and reliable manner to be able to better position itself in both the local and export
markets. It is envisaged that the project will create an attractive value proposition to investors, both local and international, due
to its economies of scale, uninterrupted supply of quality raw material and involvement in the entire value chain.
Two areas have been identified for Phase 1 comprising of 461.7 ha of agricultural land in Pasir Raja in the district of Dungun,
Terengganu and another 334.8 ha of land in Chegar Perah in the district of Lipis, Pahang. Survey works were completed in 2010
for both sites and construction is expected to commence in 2011.
The second phase of Commercial Integrated Herbal Plantations (CIHP) development will be carried out at Durian Mentangau in
the districts of Dungun, Terengganu and Rantau Manis in the district of Gua Musang, Kelantan.
The Herbal Parks will specialise in large-scale production of herbal raw materials for the herbal and biotechnology industries and
promote synergy and integration with other industries, such as pharmaceutical and nutraceutical-related products produced in
ECER Halal Parks. When completed in 2020, the herbal plantations will create more than 1,244 new employment opportunities
and offer 50 entrepreneurship opportunities in the Region.
The project will be implemented with the support of the Performance Management & Delivery Unit (PEMANDU) under the Prime
Ministers Department.

PINEAPPLE PLANTATION
The Rompin Integrated Pineapple Plantation (RIPP) in Pahang entered its first phase of construction in 2010. Located in Kg.
Jemari, Rompin, this large-scale commercial pineapple plantation has been chosen as the site for fully integrated pineapple
value chain activities such as plantations, central processing and packaging centre, livestock production utilising farm waste as
a source of animal feed, as well as downstream activities.

48 ECERDC 2010 ANNUAL REPORT

MD2 pineapple.

A contiguous land area of 5,000 acres has been granted by the State Government of Pahang
for the project, which is critical in ensuring full value chain involvement in the development
of pineapple production. When fully operationalised by 2020, it will produce 55,000 metric
tonnes of fresh pineapple annually and offer employment opportunities to 3,000 workers as
well as 50 entrepreneurship schemes under the local contract farmers arrangement. The
project will also attract private investment of RM120 million.
To ensure the projects sustainability and viability, ECERDC is collaborating with the Malaysia
Pineapple Industry Board (MPIB), the lead agency in promoting the pineapple industry in
Malaysia, while an appointed Anchor Company will take a lead in spearheading the commercial
operations of the plantations for the export market as well as to undertake its social obligation
in developing local agro-entrepreneurs and providing employment for local residents.

CASSAVA PLANTATION
A BSIP was initiated in 2010 for the development of a Commercial Food Industry Plantation
(CFIP) in ECER. As an important crop that is significantly being used as a raw material in the
manufacturing, food-based and biotechnology-related industrial clusters, cassava has been
identified and promoted in the development of CFIP.
It is envisaged that 10,000 hectares of land will be developed and planted with cassava in
the Region and this could be achieved through strategic collaborations with commercial
plantations operated by the Anchor Company, and satellite farmers as contract out-growers
through the contract farming arrangement. The project is expected to create 3,000 job
opportunities by 2020.
Demand for cassava starch in the Region is expected to increase with potential foreign
investment in the further downstream manufacturing of cassava starch-based products that
are used to produce amino acids for animal feed and polyols for food ingredients, which
will be located within ECERs Industrial Zones. The entire value chain of the cassava starchbased industry development could attract a substantial private investment of RM3.2 billion.

FISHERIES
Fish Hatchery & Fish Seed Marketing Centre
A Detailed Design was initiated in 2010 for a Freshwater Fish Hatchery & Fish Seed Marketing
Centre in Raub, Pahang. It will be a vertically integrated freshwater fish hatchery primarily
designed to produce high-quality tilapia fry and fingerlings, and act as a breeding centre to
undertake structured breeding and traceability programmes for freshwater fish broodstock.

ECERDC 2010 ANNUAL REPORT 49

The Centre will produce 20 million tilapia fish fry mainly to support the highly concentrated land-based aquaculture activities in
the Region, as well as large scale cage-based aquaculture activities in Tasik Kenyir, Terengganu. By 2020, the Centre is expected
to employ up to 85 staff and involve up to 15 contract out-growers to operate the commercial scale nursery as contract growers.
Similarly, a Detailed Design was initiated in 2010 for the Merchong Marine Fish & Shrimp Hatchery and Marketing Centre in
Pekan, Pahang. Upon completion, the high-tech hatchery, using the state-of-the-art Recirculation Aquaculture System (RAS),
will produce 10 million high-quality tiger grouper and seabass fry, as well as 50 million post-larvae shrimp for the domestic
markets. It will employ up to 85 workers and work with up to 15 out-growers by 2020.

Progress of Projects
NO.

PROJECTS

PROJECT STATUS

1.

Pusat Penyelidikan dan Inovasi Lembu


Muadzam Shah, Pahang.

Construction is at 34% work progress and is


expected to be completed in Nov 2011.

2.

Pusat Pembiakan dan Inovasi Kambing,


Kuala Berang, Terengganu.

Construction is at 8% work progress and expected


to be completed in Sept 2012.

3.

Pembangunan Ladang Pengganda Lembu


Tenusu, Kuala Berang, Terengganu.

Detailed Design consultant appointed.

4.

Pembangunan Ladang Multiplier & Ladang


Komersial Kambing, Ulu Tersat & Telaga
Papan, Terengganu.

Project is completed and commenced operations


in Nov 2010.

5.

Taman Pengeluaran & Pemprosesan


Bersepadu Ayam, Maran, Pahang.

BSIP study was completed in March 2010. Detailed


Design consultant appointed in Sept 2010 and
expected to be completed in March 2012.

6.

Taman
Pengeluaran
Bersepadu
&
Pemprosesan Sarang Burung Walit, Pekan,
Pahang.

BSIP consultant appointed in July 2011 and study


is expected to be completed in Dec 2011.

7.

Pusat Pengeluaran & Pemasaran Benih


Ikan dan Udang Marin, Merchong, Pahang.

Detailed Design consultant appointed in Feb 2010.


Construction work will commence in July 2011 and
expected to be completed in July 2013.

8.

Pusat Pengeluaran & Pemasaran Benih


Ikan Air Tawar, Raub, Pahang.

Detailed Design consultant appointed in July 2010.


Construction work will commence in August 2012
and expected to be completed in Nov 2013.

9.

Taman Pemprosesan
Pahang.

Kuantan,

Detailed Design consultant appointed in May 2010.


Construction work will commence in June 2011
and expected to be completed in Sept 2012.

10.

Taman Perikanan Bersepadu Tok Bali,


Kelantan.

BSIP consultant appointed in April 2010. Interim


report has been presented and final report together
with the Laporan Cadangan Pemajuan (LCP) will
be completed in July 2011.

11.

Pusat Pengumpulan, Pemprosesan &


Pembungkusan (CPPC) Produk Berasaskan
Ikan, Pengkalan Kubor, Kelantan.

Detailed Design consultant appointed in Sept


2010. Construction work will commence in Aug
2011 and expected to be in Aug 2012.

12.

Ladang Bersepadu Nanas, Rompin, Pahang.

Construction is at 5% work progress and is


expected to be completed in Dec 2011.

13.

Taman Herba & Bioteknologi, Pasir Raja,


Dungun, Terengganu.

BSIP study was completed in Aug 2010. Detailed


Design consultant appointed in Feb 2011.
Construction work will commence in Sept 2011
and expected to be in March 2013.

14.

Taman Herba & Bioteknologi, Cegar Perah,


Lipis, Pahang.

BSIP study was completed in Aug 2010. Detailed


Design consultant appointed in March 2011.
Construction work will commence in Oct 2011 and
expected to be completed in April 2013.

15.

Pembangunan Ladang Komersial Industri


Makanan (Cassava) di ECER.

BSIP consultant appointed in Feb 2010. Interim


report has been presented and final report will be
completed in July 2011.

Collection, Processing and Packaging Centre (CPPC) & Integrated Fish Processing Parks
During the year under review, a Detailed Design was initiated for the Pengkalan Kubor Fish Collection, Processing and
Packaging Centre (CPPC) in the district of Tumpat, Kelantan. The project represents the third-tier strategy in the fisheries industry
value chain, encompassing downstream processing, packaging, marketing and distribution activities mainly to accommodate
the fish-based cottage industry.
The fish-based products from this venture will comply with HAACP, GMP and related hygiene requirements, thus upgrading the
Centres market capabilities in penetrating the global halal export market. It is expected to employ up to 40 people by 2020.
An Interim Report for the Business Study & Implementation Plan (BSIP) for the development of the Tok Bali Integrated Fisheries
Park (TBIFP) in Pasir Puteh was completed in November 2010. The plan is to develop Tok Bali into an integrated fisheries hub
and processing centre as well as one of the premier marine eco-tourism attractions in the East Coast. Ten flagship activities have
been identified and focus will be given to leverage on the Joint Development Strategy (JDS) for Indonesia-Malaysia-Thailand
Growth Triangle (IMT-GT). This project will employ up to 155 people by 2012.
Overall planning of TBIFP will take into consideration the Tok Bali Supply Base Terminal project initiated by the States Government
which is located within the vicinity of the development. This coordination and venture could bring private investment of RM2.9
billion to the projects.
The Detailed Design for the Kuantan Fish Processing Park (KFPP) was completed in 2010. The first phase of construction will be
carried out by June 2011. Located in Tanah Putih, Pahang and within the vicinity of the LKIM Fish Landing Jetty, it will support
the downstream activities of the fish-based processing industry leveraging on the high availability of raw material such as highquality marine fish capture and aquaculture fish produce, targeting the domestic and international cold-storage networks and
domestic distributions channels. The Park will employ up to 150 people and work with up to 15 contract manufacturers and
vendors by 2020.
Many of the projects in the Agriculture cluster draw in the people in the vicinity, or through settlers in relocation programmes, to
participate in the new ventures. This is part of the social development objective of ECER, providing employment and entrepreneur
opportunities that help raise income levels and eradicate poverty.

50 ECERDC 2010 ANNUAL REPORT

Ikan,

ECERDC 2010 ANNUAL REPORT 51

Agropolitan
The Agropolitan project aims to eradicate poverty in ECER and improve the standard of living for its
participants, which is in line with the Governments New Economic Model (NEM).

Runchang is the site for the Pekan Agropolitan pilot project, which was launched by the
Prime Minister of Malaysia, YAB Dato Sri Mohd Najib Tun Razak in 2009. The pilot project
involves 30 Orang Asli participants and has been in operation since August 2009.

This integrated socio-economic project brings about positive changes in their lives through allocation of
land for agriculture-related activities, supported by processing and marketing activities and resettlement
of poor families.

Twenty-four new APUs are being built in Runchang since August 2010, in addition to the
existing 11 APUs. The new APUs are expected to be ready by December 2011.

Pekan Agropolitan
The Pekan Agropolitan project in Pahang is currently being implemented in three locations, namely Batu 8 in Lepar, Runchang
and Tanjung Batu respectively.
At Batu 8 in Mukim Lepar, 100 participants moved into their new houses built by ECERDC in September 2010. Prior to moving
into their current homes, all participants went through induction training to help them adjust to the new surroundings, occupation
and lifestyle.

The Pekan Agropolitan project in Runchang has already proven its success by providing
a steady monthly income of RM600 to the participants, who are working a minimum of
four hours a day. Their allowance is paid through the participants personal bank account,
which has helped encourage a healthy savings habit among them.
Within a year of the projects launch, the first Pekan Dorper Auction was held in Runchang
on 8 August, 2010 and received positive response from the public. The auction successfully
generated sales worth RM265,550 and part of the profit from the sale was shared among
the participants.

100

participants
of Pekan Agropolitan in
Lepar were relocated
to their new houses in
September 2010.

Sheep rearing is the primary income generating activity in this location, through which the participants are expected to enjoy a
steady income of RM1,000 monthly. For this purpose, 60 Animal Production Units (APU) for Dorper sheep are being built in Batu
8, of which 30 APUs were already completed as at the end of 2010, while the rest will be ready by June 2011.

60 Animal Production Units (APU) for Dorper sheep.

52 ECERDC 2010 ANNUAL REPORT

New homes for the 100 participants of the Pekan Agropolitan project in Batu 8, Mukim Lepar.

ECERDC 2010 ANNUAL REPORT 53

ECERDCs CEO Y. Bhg Dato Jebasingam Issace John during a South Kelantan Agropolitan (SKA) project
site visit in Gua Musang.

New homes for the 10 pilot participants under the SKA.

Tanjung Batu, Mukim Bebar is the latest site under the Pekan Agropolitan project. Construction of 213 houses by ECERDC for
the project participants commenced in September 2010 and is expected to be completed by December 2011. Development
works have also begun on a 1,200-hectare oil palm estate in Tanjung Batu, as cultivating the crop will be the primary activity for
Agropolitan participants in this location.
South Kelantan Agropolitan
Under the South Kelantan Agropolitan (SKA) project in Rantau Manis, Gua Musang, 10 pilot participants had already moved into
their homes in May 2009. They are now earning a steady income of up to RM1,000 a month by working at the oil palm plantation
and undertaking cocoa planting activities. The participants and their families have also benefited from the special training and
programmes provided by ECERDC, such as the SINAR ECER programme and cocoa planting courses.
In March 2010, ECERDC began building 350 new houses in Gua Musang for the relocation of participants under the SKA
project. The houses are expected to be ready by June 2011. The development in SKA also includes the construction of other
facilities such as surau, multipurpose hall, shophouses, office building and kindergarten for the benefit and convenience of the
participants.
Oil palm plantation is the primary income generating activity for SKA. In 2010, a total of 1,500 hectares of land had been
cultivated with oil palm under this project, which includes the rehabilitation and re-planting of oil palm plantations in Rantau
Manis, Jeram Tekoh, Sungai Asap and Renok Baru.
The SKA will not only benefit the project participants but also the surrounding communities through the upgrading of the Water
Treatment Plant in Limau Kasturi, which will cater to the water needs of SKA and its nearby areas. The water treatment plant
capacity will be increased to 5.9 million litres a day from 1.9 million litres per day. The construction work was 70% completed as
of end-December 2010 and is expected to be ready by June 2011.
Besut-Setiu Agropolitan

Cocoa plantation under the SKA.

LIST OF PROJECTS
1.

SOUTH KELANTAN AGROPOLITAN PROJECT

1.1

Package 1 - QuickWin 10 unit houses

Completed

1.2

Package 2 - Water Treatment Plant Limau Manis

Construction Progress: 67%

1.3

Package 3 - 350 unit houses and public amenities

Construction Progress: 16%

1.4

Package 5 - Replanting of Oil Palm (599 hectares)

Replanting Progress: 78%

1.5

Package 6 - Rehabilitation of Oil Palm (591 hectares)

Rehabilitation Progress: 90%

1.6

Package 7 - Replanting of Oil Palm (325 hectares)

Replanting Progress: 2%

2.

BESUT SETIU AGROPOLITAN

2.1

100 houses and 50 Animal Production Units

3.

PEKAN AGROPOLITAN

3.1

Package 1 - QuickWin 10 Animal Production


Units Pekan

Completed

3.2

Package 3 - 100 houses and public amenities

Completed

3.3

Package 4 - 1 Animal Production Unit Runchang

Completed

3.4

Package 5 - 60 Animal Production Units

Construction Progress: 40%

3.5

Package 6 - 24 Animal Production Units

Construction Progress: 20%

3.6

Package 7- 213 houses and public amenities

Construction Progress: 2%

Construction Progress: 1%

At Besut-Setiu Agropolitan, site clearing began in September 2010 for the construction of 100 homes and 50 APUs for project
participants, as well as public infrastructure and amenities such as surau, community hall and kindergarten. The primary income
generating activity for Besut-Setiu Agropolitan (BSA) will be Boer goat rearing, through which the participants are expected to
receive a monthly income of RM1,000.
ECERDCs Agropolitan initiative has received strong support from all the parties involved, including the respective State
Governments which have granted land approvals for the projects. ECERDC has appointed FELDA as the Implementing Agency
for Pekan Agropolitan project, while the South Kelantan Development Authority (KESEDAR) is the Implementing Agency for SKA.
The role of the Implementing Agencies is to manage the Agropolitan participants and the economic activities carried out under
the project. ECERDC also collaborates with various Management Agents such as the Malaysian Cocoa Board and Universiti
Malaysia Kelantan in implementing secondary economic activities for the Agropolitan projects.

54 ECERDC 2010 ANNUAL REPORT

ECERDC 2010 ANNUAL REPORT 55

HUMAN CAPITAL DEVELOPMENT


56 ECERDC 2010 ANNUAL REPORT

The development of human capital


is vital in ensuring the successful
implementation of ECER projects
and in attracting more investments into
the Region.

ECERDC 2010 ANNUAL REPORT 57

Human Capital Development


Human capital development initiatives introduced by ECERDC are mainly aimed at preparing the local
workforce in ECER to meet the needs of the industries. Playing a dual role as an economic driver and a
catalyst for growth in the Region, education is also a key enabler that supports other clusters in ECER
such as agriculture, manufacturing and tourism by generating a pool of skilled and capable workers.

Attended by 250 entrepreneurs and 50 agencies, the convention has created the following impacts:

Programmes such as empower and Suri@Home are also implemented to elevate the income of local
residents, while the ECER Entrepreneurship Development Programme (EEDP) is aimed at promoting the
growth of ECERs Bumiputra commercial community and Small- and Medium-Enterprises (SMEs).

Training for Pekan Agropolitan Participants

EDUCATION
ECERs education initiatives include the ECER Centres of Excellence (COE), KerJaya ECER and empower.
ECER Centres of Excellence (COE)

Awareness of the functions of CIAC


Matching of innovation/research to industry needs and vice versa
Matching of innovation/research to entrepreneurs (BCIC and SME)
Awareness on advisory and financial services available to entrepreneurs

The training was conducted from 18 October until 22 October 2010 for 200 Pekan
Agropolitan participants and their families in Batu 8, Mukim Lepar to enable them to adjust to
their new surroundings, occupation and lifestyle upon their relocation to the Agropolitan site.
There were two types of training provided for Agropolitan families: the first was technical
training on sheep rearing, which is the primary activity of the project; while the second was
aimed at motivating and changing the mindset of the Agropolitan families.
ECERDC introduced the Sinar ECER programme to support its Agropolitan projects
in Pekan and Gua Musang (South Kelantan Agropolitan). Sinar ECER is a dedicated
programme that was designed to stimulate the minds and attitudes of nearly 100
Agropolitan children, who are between the ages of 6 and 12 years.

ECER is currently the home of several universities namely, Universiti Malaysia


Kelantan (UMK), Universiti Sultan Zainal Abidin (UniSZA), Universiti Malaysia
Terengganu (UMT), Universiti Malaysia Pahang (UMP), Universiti Tenaga Nasional
(Uniten) Muadzam Shah, Universiti Sains Malaysia (USM) Kubang Kerian and
Universiti Teknologi Mara (UiTM) in Dungun, Machang and Jengka respectively.
Fifteen Centres of Excellence (COE) have been established within five public
universities in ECER to fulfill their supporting role to the needs of industries,
particularly in the areas of tourism, oil, gas and petrochemical, manufacturing,
agriculture, Halal products, wood-based products and biotechnology, and
hospitality and tourism management.

As of December 2010,
a total of

2,645
locals

have successfully been


employed through KerJaya
ECERs Graduate Placement
Opportunity (GPO)
Programme, Employee
Placement Programme
(EPP) and the Skills Training
Programme (STP).

The programme also aims to motivate and inculcate strong values and character among
the younger generation who will determine the future of our nation.

Launch of KerJaya ECER programme in Pahang.

The following programmes were carried out by the COEs during the year under review:
Universiti Malaysia Kelantan (UMK)
In 2010, UMK undertook a total of four programmes under the COE initiative, namely:
Konvensyen Keusahawanan ECER-Kementerian Pengajian Tinggi (KPT) 2010
This convention was held in March 2010 to promote the objectives and functions
of the Centre for Industry-Academia Collaboration (CIAC) and to gather ECER
entrepreneurs for networking and knowledge sharing purposes.
It was also aimed at creating awareness of existing financial and non-financial
assistance offered to the entrepreneurs by the relevant government agencies
and financial institutions. At the same event, the CIAC and its website were
officially launched by the Minister of International Trade and Industry, Dato Sri
Mustapa Mohamed.

58 ECERDC 2010 ANNUAL REPORT

Konvensyen Keusahawanan ECER-KPT 2010.

Motivational programme for participants of Pekan Agropolitan project.

ECERDC 2010 ANNUAL REPORT 59

SINAR ECER Modules and Goals

MODULE 1
Exposure

MODULE 2
Education

MODULE 3
Expansion

SINAR ECER
In 2010, Sinar ECER was implemented in Pekan
Agropolitan and South Kelantan Agropolitan (SKA)
from the months of July to December. Ninety-five
children took part in the programme, of which 69
were from Pekan Agropolitan (Runchang) while
another 26 were from South Kelantan Agropolitan
(Gua Musang).

Develop
Greater
Focus &
SelfConfidence

The impact of the programme is already evident,


as reflected in the Ujian Penilaian Sekolah
Rendah (UPSR) 2010 results which saw Juyana
Teor Bak Song of Sekolah Kebangsaan Runchang scoring 5As
in the exam. Juyana, a Sinar ECER participant, created history
by becoming the first ever Orang Asli child from Runchang to
achieve straight As in the UPSR.

Become
Motivated
and
Outcome
Oriented

Building
Foundation
Learning
Skills

Achieve
Excellent
Grades

Become
Mature
&
Responsible

Strive for
Excellence
in
their Lives

While in Chengdu, the industrial trainees were exposed to design and printing techniques,
colour coordination and the formulation of five prototypes comprising kimono, sari, scarf,
shawl and cloth yard.

During the year under review, the Pilot Development of


the Aquaponic System was carried out in South Kelantan
Agropolitan by 10 Agropolitan participants with the aim of
increasing their household income.

This programme also involved exposure to selected mentors and their products at the
Shanghai Fair in China, which promotes textiles from all around the world.

Children showing keen interest in the Sinar ECER programme.

Universiti Malaysia Kelantan undertook the project by educating


and training the SKA participants on the technology and
skills related to modern aquaculture and agriculture farming.
The university also encouraged the development of a selfmotivated and self-reliant community, which will help increase
local employment opportunities particularly in catfish and
vegetable production, as well as in other related aquaculture
and agriculture industries.
Universiti Sultan Zainal Abidin (UniSZA)
UniSZA was appointed by ECERDC as the Centre for Halal
Certification and Herbal Registration in 2009. The Centre serves several main functions, namely:
To provide related services, including relevant testing for SME products in order to obtain Halal Certification and Herbal
Registration
To assist the SMEs in meeting the Halal and HACCP requirements in order to market their products
To provide toxicity profiles and bioactivity validation of herbal products for SMEs in ECER
To create awareness among SMEs of the importance of Halal certification and Herbal Registration in product marketing.
The services provided by the Centre include consultation support, product testing, training, workshops and seminars. In 2010,
the Centre provided its services to about 60 SMEs and 300 individuals in the Region.
To further elevate the standard of its services, the Centre is currently in the process of obtaining the accreditation of the
laboratories from Standard Malaysia, which is expected to be completed by 2012.

60 ECERDC 2010 ANNUAL REPORT

UiTM Machang
UiTM Machang embarked on a different mode for its batik development programme
in 2010 by engaging a foreign partner, namely Shuxing Silk Sichuan, a textile producer
from Chengdu, China. Under the collaboration, Shuxing Silk Sichuan trained six
industrial trainees from ECER in Chengdu for a period of six months. Upon completion,
the industrial trainees will be appointed as mentors to further train six mentees in the
incubator established in UiTM Machang. The mentees are chosen among local youth and
single parents.

The Development of Aquaponic System in South Kelantan


Agropolitan (SKA)

Commercially, aquaponics is still in its infancy, but as the


technologies relating to aquaponic farming are constantly being
developed and refined, it has the potential of becoming a more
efficient and space-saving method for rearing fish and growing
vegetables or even herbs.

Launching Ceremony of the Pahang Biodiversity-Biotechnology Strategic Action Plan.

KerJaya ECER
As part of its Education initiatives, ECERDC has developed the KerJaya ECER programme
that was originally formulated to mitigate unemployment problems caused by the previous
global economic crisis. The programme consists of the Skills Training Programme
(STP), Graduate Placement Opportunity (GPO) Programme and Employee Placement
Programme (EPP). ECERDC launched KerJaya ECER in Terengganu in January 2010 and
in Kelantan in March the same year, following the successful launch of KerJaya ECER in
Pahang in December 2009.
KerJaya ECER is part of the RM7 billion economic stimulus package announced by
the Government in November 2008, of which RM40 million has been allocated for skills
training within ECER under the Ninth Malaysia Plan.
The STP saw 13 Training Providers providing training to 1,771 trainees throughout the year,
of whom 1,268 have successfully secured job placements. This represents 72% of the total
trainees who graduated, thus exceeding the 70% target rate. The training conducted by
the Training Providers include Product Development & Engineering, Automotive Medium &
Large Die Design Engineering, Plant Design Automation Programme for Oil & Gas Industry,
Process Plants Safety & Health, Fibre Optic & Mobile Communication Network, Wireless &
Data Communication, and Welding Skills Enhancement Programme, among others.
The trainees were hired by companies such as Mydin, Genting Highlands Resort, Perwaja
Steel Sdn Bhd, Hyatt Resort Kuantan, Primula Beach Resort Terengganu, Vistana Kuantan
and Sanctuary Beach Resort Kuantan.

ECERDC 2010 ANNUAL REPORT 61

As for GPO and EPP programmes, ECERDC has successfully placed 1,379 graduates and non-graduates within various
companies in ECER, exceeding the target number of 1,350 placements. These companies include HICOM Automotive Sdn Bhd,
Hi Essence Cable Sdn Bhd, Atostech Fibreglass Sdn Bhd, Koperasi Setia Maju Kuala Terengganu, Sri Baru Fast Automobile Sdn
Bhd, Smart Tech Innovative Sdn Bhd and Watsons Personal Care Store Sdn Bhd.

Empower
ECER Human Capital
Development Programme

empower Bentong
empower is another education initiative by ECERDC which was launched in Bentong Pahang in July 2010, as part of the Councils
efforts to boost the academic achievement and employability of the locals, as well as creating entrepreneurship opportunities for
them through the skills training provided.
The idea for empower was originally mooted by YAB Dato Sri Diraja Haji Adnan Bin Haji Yaakob, the Menteri Besar of Pahang
who had requested ECERDC to look into the development of the Indian community in Pahang and identify relevant programmes
that can help enhance the socio-economic status of the community. This original idea was then expanded to include all races in
line with the 1Malaysia spirit.
empower uses a community development approach in realising its objectives. This approach has several distinguished features
in terms of:




Giving guidance and motivation in changing the participants mindset and improving their income
Training modules are preceded by a survey to determine the needs and interests of the community and participants
Flexible teaching method and timetable
Syllabus is modified to cater to participants comprehension level and according to the scenario within the community
Bringing the training facilities to the participants/community.

There were two types of programmes introduced for the people of Bentong, Pahang, comprising Academic Training for 400
students and Skills Training for 600 adults.
empower has already shown positive impact in terms of improvement in the academic area, whereby 163 UPSR students
and 119 PMR students among its participants managed to score 100% passes in all subjects taken. They have also exceeded
ECERDCs set targets, as reflected below:
Examination &
Minimum Grade

Actual No. of Students


& Percentage (%)

Targeted No. of Students


& Percentage

UPSR (min. 2A & 3B)

67 students (41%)

17 students (10%)

PMR (min. 3A & 4B)

16 students (13%)

12 students (10%)

As of 31 December 2010, while the Skills Training courses were still ongoing, a total of 180 adult participants have managed
to be placed within companies in ECER or embarked on their own entrepreneurship ventures. They are now earning additional
incomes of between RM800 and RM1,000 per month, with some getting even more.

Graduate Placement Opportunity programme.

62 ECERDC 2010 ANNUAL REPORT

Initiatives under the KerJaya programme.

SURI@HOME
The Suri@Home Programme is part of ECERDCs social development programme which is
specially tailored for the women of ECER. This programme focuses on home-based activities
or businesses, such as handicraft-making as well as agriculture-related and product
processing as the primary activity for the target group, to help them earn a regular income.
Among the projects that have already started are Mushroom Farming and Vermicompost
in Kelantan; Tenun Weaving in Pahang; and most recently, Songket Weaving in Terengganu
with a total of 60 participants.
Fifteen participants are currently taking part in mushroom farming in Kota Bahru, Kelantan.
The Vermicompost project is currently being implemented in Bachok, with the participation
of six women from several different villages surrounding the area. Tenun weaving projects in
Pahang are currently being implemented in Kuantan and Pekan with 14 participants taking
part in this highly artistic activity. For Songket weaving, three participants in Kuala Terengganu
area have been chosen from the e-Kasih database to participate in the programme.
The Suri@Home Programme has helped reduce the level of unemployment among the
local women and it has also provided employment opportunities for those with mobility
constraints, while increasing their families household income as a whole. These women are
now earning additional incomes of about RM700 a month.
ECER ENTREPRENEURSHIP DEVELOPMENT PROGRAMME (EEDP)
ECER Entrepreneurship Development Programme (EEDP) was created to develop and
promote a competitive Bumiputera Commercial and Industrial Community (BCIC) and
Small- and Medium-Enterprises (SME) via collaboration with related Government agencies
as well as the private sector.
Two pilot projects have been implemented in Mersing, Johor under EEDP, namely the Vendor
Development Programme-Sewing Project and Boat Building and Repair Centre (BBRC). The
projects involved the partnership between ECERDC and GIATMARA Sdn. Bhd, with the
support of the Mersing District Office.
Vendor Development Programme-Sewing Project
Under ECERDCs Vendor Development Programme, the pilot Sewing Project was launched
with the involvement of 20 participants who were chosen from among Mersing residents and
subsequently trained to meet tailoring orders.
The Vendor Development Programme Sewing Project sees the participation of Koperasi
Usahawan Giatmara Johor (Ko-GIAT Johor) as the pilot vendor that undertakes the production
and marketing of products from Terminal Jahitan, the sewing centre which is the fruit of ECERDCs
involvement. ECERDC provided the initial capital for the set-up of the sewing centre.

Training modules under empower programme.

ECERDC 2010 ANNUAL REPORT 63

STATUS OF HUMAN CAPITAL DEVELOPMENT PROJECTS IN ECER


AS OF END DECEMBER 2010

Through this project, the Vendor Company with the guidance of GIATMARA, will be able to ensure sustainable production, while the
participants will receive an additional monthly income of RM700. Through their involvement in this project, the participants are also
exposed to the latest designs, marketing and branding techniques in clothing products, with the aim of creating more entrepreneurs
among them.
Boat Building and Repair Centre (BBRC)
EEDPs Boat Building and Repair Centre (BBRC) project in Mersing is currently being undertaken by ECERDC in partnership
with GIATMARA Sdn. Bhd, which has been appointed as the Implementation Agent for the project. GIATMARA is responsible
for running the centre which will see participation from local entrepreneurs, while providing the expertise and services for the
building and repair of boats.
Two local entrepreneurs with the required expertise in this field will be running their business at BBRC under the supervision of
GIATMARA.

No.

Projects/Programmes

Status

1.

Skilled and Re-skilled Training Programmes &


Placements (STP)

Completed: 1,771 (100%) trainees completed the


training courses. 1,268 (72%) of the graduated
trainees have secured work.

2.

Graduate Placement Opportunity Programme


(GPO)

Completed: 1,089 (109%) from the targeted


placement of 1,000 have secured work.

3.

Employee Placement Programme (EPP)

Completed: 1,089 (109%) from the targeted


placement of 1,000 have secured placement of work.

4.

empower Programme Phase 1 - Bentong

On-going: The training programmes are targeted


to be completed by February 2011 and followed
by placement process for 3 months (May 2011). As
of Dec. 2010, the progress of placement was 184
trainees (equivalent to 38.3% of 480 placements).

5.

Suri@Home

On-going: This programme is targeted to end by 2013


with a total of 60 participants, particularly women
in the rural landscape, embarking on economic
activities. As of December 2010, 38 participants
were enrolled in this programme and have made an
additional income of RM700 per month.

6.

Sinar ECER 2010

Completed: A total of 95 Agropolitan children


(100%) in South Kelantan Agropolitan (SKA) and
Pekan Agropolitan (PA) completed the programme.

7.

Development of Aquaphonics System for 10


Agropolitan participants in South Kelantan
Agropolitan

On-going: The construction of the system is still


on-going and is expected to provide extra income
to participants from the production of vegetables
and fish.

8.

Development of Training and Research


Centre for Livestock in Universiti Malaysia
Kelantan (UMK)

On-going: 50% of the development of the centre


has been completed. Planning for the development
of Small Ruminant Operating Procedures (goat and
sheep) was underway.

9.

Motivational and Technical Training


for Agropolitan Participants (Pekan
Agropolitan, Lepar)

Completed: A total of 200 participants and their


dependants completed the training in October 2010.

10.

Industrial Skills for Enhancement Training


and Development of textile-based products
and batik for youth and single parents in
ECER.

On-going: A total of six trainees (100%) completed


their training in Chengdu, China. Planning for
the development of a Batik Incubator Centre is
undertaken to train another six industrial trainees
(mentor-mentee) to produce batik.

11.

Vendor Development Programme (VDP)


Mersing-Sewing Project
Pilot Project EEDP No.1

On-going: The VDP Sewing Project commenced


operations on 1 November 2010 and will end by
30 October 2013 (3-year project). There are 15
participants (workers) involved in the project (75%)
as opposed to the targeted 20 participants from the
e-Kasih list.

12.

Boat Building and Repair Centre (BBRC)


Mersing Pilot Project EEDP No.2

On-going: The construction of BBRC is at


53% progress. The construction work has been
scheduled for completion by 30 April 2011. The
operation of BBRC is scheduled in July 2011.

13.

ECER Entrepreneurship
Programme (EEDP)

On-going: The implementation of EEDP has been


approved by the ECER Development Council on 16
December 2010. EEDP offers two types of packages
namely access to financial assistance and soft
development such as training, R&D and marketing
to entrepreneurs of ECER. The arrangement with
Financial & Strategic Partners is scheduled for
completion by June 2011. EEDP is expected to be
implemented by July 2011.

BBRC is expected to serve the boat owners and fishermen in Mersing, as well as its surrounding areas. At the same time,
GIATMARA will be managing the training centre for GIATMARA trainees, to help create job opportunities in this sector.

Development

Menteri Besar Johor Dato Haji Abdul Ghani bin Othman being briefed on the Boat Building and Repair Centre project.

64 ECERDC 2010 ANNUAL REPORT

ECERDC 2010 ANNUAL REPORT 65

ENABLING SUSTAINABLE
DEVELOPMENT: ENVIRONMENT
66 ECERDC 2010 ANNUAL REPORT

In carrying out the projects in


ECER, special emphasis is
being placed on conserving
the environment to ensure
sustainability for years to
come. This is to maintain
the integrity of the natural
environment alongside
development for the benefit
of future generations.

ECERDC 2010 ANNUAL REPORT 67

Enabling Sustainable Development: Environment


The East Coast Economic Region (ECER) is rich in biological resources comprising large expanses
of forests, wetlands and thriving marine ecosystems. The Region is endowed with rugged terrain
and scenic heritage and it is also home to unique species which cannot be found elsewhere.
ECERS ENVIRONMENTAL POLICY
ECERDC places the utmost importance on safeguarding the Regions environment quality and resolutely subscribes to the
principles of sustainable development of stewardship to the environment, contribution to society and the creation of economic
value and progress.
The Environmental Strategies drawn for ECER are based on the Fourth Thrust of the National Mission, which is to improve the
standard and sustainability of the quality of life, and to ensure that the development activities in the Region are undertaken in a
sustainable manner. As such, the natural resources in the ECER will be utilised wisely within the framework of socio-economic
viability so as to meet the needs of the present society, while respecting the ability of the future generations to meet their needs.
ECERDC is committed to: Maintain and preserve areas of environmental importance and of high conservation value and to realise their own distinctive
socio-economic potential so as to facilitate learning and appreciation of these sites and ensure that natural resources are
not depleted
Establish and implement a conscientious system of environmental management for effective protection of the environment in
all our project initiatives
Identify and adhere to all environmental laws, regulations and contractual requirements applicable to our projects
Advocate the adoption of clean technologies to promote optimisation and sustainability in the use of natural resources
Undertake necessary actions for waste management and pollution prevention and efficiently manage any adverse environment
impact at all our project sites
Cultivate environmental awareness amongst all employees and provide adequate training on matters pertaining to
environmental protection and management.
ECERDC will take the necessary measures to ensure that sufficient resources are available for pursuing the above commitments.
The Council will also ensure that all its employees, consultants, contractors, sub-contractors and businesses abide by all legal
requirements and implement all possible measures to alleviate environment impacts associated with our projects.

ECERDCS ENVIRONMENT INITIATIVES


Tasik Chini Rehabilitation and Conservation
During the year under review, a Strategic Implementation Plan (SIP) study was carried out for Tasik Chini State Park which will
undergo integrated rehabilitation and conservation works. Recognised by UNESCO as the first biosphere reserve in Malaysia,
Tasik Chini has been identified as one of the ecotourism attractions in ECER.
Lojing Highlands Integrated Management Plan
ECERDC has undertaken the Integrated Management Plan study for Lojing Highlands in Kelantan, which had been identified
as a Special Management Area under the National Physical Plan and the ECER Master Plan. This study aims to produce the
68 ECERDC 2010 ANNUAL REPORT

Environmental Management Guidelines for major sectoral activities in the area, particularly
forestry, agriculture, tourism, urban development and infrastructure.
Four principles will guide the study team throughout the plan preparation. They will
also guide the process under all circumstances in making evaluations and planning
recommendations and actions, including the planning strategy, development proposals
and mitigating measures. The guiding principles are:
Delivering sustainable land use planning and development
Protecting heritage areas and avoid disrupting ecological stability
Striving towards compact, energy-efficient urban forms with clear local identity; and
Promoting active local participation and social inclusiveness.
The study has adopted an issue-solving approach based on river catchment basins.
Effective planning in the environmentally sensitive Lojing Highlands area involves both
top-down and bottom-up approaches, as well as cross-sectoral integration.
In preparing the IEMP, a central feature is the application of a discursive and consultative
approach with all relevant public agencies and interested stakeholders, especially the
local Orang Asli communities, at significant stages throughout the plan-making process
to enhance urban governance and participatory planning.
Kampung Penarik/Setiu Wetlands
The Kampung Penarik Mainland Coastal Tourism Development and the Setiu Wetlands
State Park have been identified as a potential sustainable economic catalyst through the
creation of innovative tourism activities within the area.
These tourism activities will be packaged and promoted with an enforceable Management
Plan in managing the Setiu Wetlands State Park, which is regarded as an environmental
and economic asset for the state of Terengganu.
Setiu Wetlands is envisioned to become the premier wetlands in the East Coast, which
will be supporting sustainable economic development for Terengganu. This development
concept is based on conservation which would attract tourism into the area, with culture
and nature-based tourism being the main thrusts of the development proposal. Hence,
it would balance between the needs of the environment, and the economic and social
needs of the people living in the area.
The study area identified and recommended for this project covers 1,025 square km. Three
categories of internal management zones were created for Setiu Wetlands State Park,
namely Strict Protection Zone which encompasses sites of highest biodiversity value
in the park, River Restoration Zone which focuses on rehabilitation of the largest rivers
in the park, and Sustainable Use Zone which identifies areas for sustainable economic
development and community use.

ECERDC 2010 ANNUAL REPORT 69

Transportation & Infrastructure


Improving the Regions connectivity and infrastructure has been a key part of ECERs development
strategy. Infrastructure projects covering master plans, roads, seaports, water supply, coastal
protection and rail are currently in various stages of implementation.
KUANTAN PORT CITY DEVELOPMENT & KUANTAN PORT EXPANSION
Kuantan Port City (KPC) has been identified as one of the major Focus Nodes for the ECER Special Economic Zone (ECER SEZ).
It will be developed as a vibrant and dynamic regional capital and will establish itself as the eastern gateway of Malaysia. Once
completed, the KPC development is expected to create new jobs for up to 44,000 people by 2020.
The KPC Integrated Master Plan was completed in the first quarter of 2010 and is currently being incorporated into the Kuantan
Local Plan. The Master Plan includes several major land use components, namely the expansion of Kuantan Port, as well as the
development of new areas for industries, residences, commercial, tourism, institutional and open spaces.
Kuantan Port expansion will include the construction of a new deepwater port that will allow the berthing of larger and more
modern vessels and promote transshipment activities. The expanded Kuantan Port is expected to be the catalyst for the
development of the hinterland region. During the year under review, a financial study was carried out to determine the most
viable port model.

To improve the water supply to Gambang and Kuantan areas, the construction of Panching
Water Treatment Plant (Package 1) commenced in August 2010 and is anticipated to
be completed in August 2013. The design works for the R2 and R8 new water storage
tanks to supply uninterrupted water to the Gebeng Industrial Area was initiated in the first
quarter of 2010 and are expected to be completed by the second quarter of 2011.
The design consultant for Ganchong Water Works was appointed in May, with design
works expected to be completed in mid 2012 and construction scheduled for early 2013.
Road Works

Terengganu State ICT Centre


A BSIP Study was commissioned for the proposed Terengganu State ICT Centre at the end of 2010. The objective of the study is
to determine the suitability of the site and viability of the project, and also to develop the strategies to promote it as an ideal ICT
centre. The development of Terengganu State ICT Centre will be a catalyst that will drive the ICT industry growth in Terengganu
and ECER. The study is expected to be completed in the third quarter of 2011.

ECERDC has also given the task of providing the external infrastructure works for Tanjung
Agas Oil, Gas & Logistics Industrial Park, such as Ganchong Water Works and Pekan
Coastal Road & Bridge. The design consultant for Pekan Coastal Road/Bridge was
appointed in March and design works are expected to be completed by the end of 2011.

Kuala Terengganu City Centre

The design for road improvement works from Sg. Emas to Kampung Peta in Taman Negara
Endau-Rompin has been completed and the construction works will commence in 2011.
The Detailed Design for the Southern Package from Kahang to Sg. Emas will also be
completed in 2011. The improvement works when completed will provide uninterrupted
access into the national park as the road will be raised above the flood level.

From the Integrated Master Plan of KTCC, Muara Utara and Muara Selatan, the reclaimed pieces of land strategically located at
the estuary of Sungai Terengganu, have been identified for immediate development. The Muara Utara and Muara Selatan Layout
Plan was approved by the Terengganu State EXCO in November. Subsequently, a detailed design study of the infrastructure
works for the area will commence in April 2011 for implementation.
Water Works
The immediate projects identified in the KPC Integrated Master Plan include the upgrading of the water supply. The construction
of a 2-km water pipeline to improve the water quality in Gebeng Industrial area was completed in the first quarter of 2010.

70 ECERDC 2010 ANNUAL REPORT

44,000
new jobs by 2020.

To improve the traffic flow to Kuantan Port, the existing FR3 road from Jabor-Jerangau
Interchange to Sungai Ular Interchange will be upgraded to two lanes. The design for the
road was completed and handed over to the Public Works Department (JKR) in May for
implementation.
The construction of KPC Port Link Road, complete with a new interchange at the East
Coast Expressway Phase 2 will provide a high speed and reliable link from the industrial
areas in Terengganu and Kelantan to Kuantan Port. The design works are currently being
carried out and are expected to be ready by the end of 2011.

During the year under review, the Integrated Master Plan study for Kuala Terengganu City Centre (KTCC) was in its final stage.
KTCC development will be the catalyst project that will spur the development of tourism in the state of Terengganu. The project
is expected to create up to 82,591 jobs by 2020 and 105,128 new employment opportunities by 2030.

Once completed, the


Kuantan Port City
development is expected
to create

Following the completion of the design for the Mersing to Kg. Sedili Besar New Coastal
Road, the land acquisition exercise was initiated and is targeted to be completed in 2011.
The upgrading of the Central Spine Road (CSR) from Kuala Krai to Simpang Pelangai
into a two-lane dual carriageway was also in progress, with the implementation of two
construction packages. Once completed, the CSR would spur the growth of the small
towns along the road, thus improving the socio-economic conditions of the local residents.

ECERDC 2010 ANNUAL REPORT 71

To ease the daily traffic congestion, the existing Bukit Kuang Bridge would be replaced with a four-lane bridge. Construction
works for the new bridge started in July 2010 and are expected to be completed by 2013.
Other Infrastructure Works
The feasibility study for the East Coast Rail Route was also ongoing and is expected to be completed by 2011. Discussions with
various stakeholders were held to confirm the alignment of the rail route from Kuala Lumpur to Tumpat.
Due to the serious erosion along the Teluk Lipat coastal area in Dungun, a design for coastal protection works was initiated. The
design will be completed in 2011 for construction.

STATUS OF TRANSPORTATION & INFRASTRUCTURE PROJECTS


IN ECER AS OF END-DECEMBER 2010

REAL ESTATE
Property and construction-related activities are vital in the Region to ensure sufficient
supply of residential, leisure, commercial and industrial properties to meet the Regions
economic demands and growth.
A key element in real estate development projects in ECER is that they must take into
account the surrounding natural environment as well as the local culture and heritage, to
ensure that these elements are not endangered.
ECERDCs Real Estate Corporation (REC) & Real Estate Trust Fund (RETF)
To unlock the value of Malay Reserve Land into commercially viable real estate ventures
that will benefit the local populace, ECERDC has established the Real Estate Trust Fund
with an initial fund of RM100 million. The fund was set up in October 2009 in accordance
with Schedule 3 of ECERDC Act (Act 688).

No.

Projects

Status as of 31 December 2010

1.

KPC Integrated Master Plan


incorporation into the local plan

Completed and handed over to Majlis Perbandaran Kuantan for

2.

KTCC Integrated Master Plan

80% completed

3.

Terengganu ICT Centre BSIP

Principal consultant for BSIP appointed end-September

4.

2 km Water Pipeline Works

Completed ahead of schedule in February

5.

Panching Water Treatment Plant (WTP)

Construction for Package 1

6.

R2 & R8 Water Storage Tanks

Detailed Design consultant appointed

7.

Tg. Agas Infra-Ganchong WTP

Detailed Design consultant appointed

8.

Tg. Agas Infra-Coastal Road & Bridge

Detailed Design consultant appointed

9.

KPC Port Link

Detailed Design consultant appointed

10.

KPC FR3 Road

Detailed Design is ongoing and was handed over to JKR in May

11.

Mersing-Sedili New Coastal Road

Detailed Design is ongoing

To promote and increase Bumiputera ownership in the local real estate market

2.
1

Kahang-Endau/Rompin Road Upgrading


Detailed Design for Southern Package is ongoing

Detailed Design for Northern Package completed;

3.
1

Central Spine Road (CSR)


Two (2) construction packages were awarded

Handed over to JKR in 2009

To undertake an integrated approach towards the creation and development of


businesses among the Bumiputera Commercial and Industrial Community (BCIC)

4.
1

Bukit Kuang Bridge


Construction started July

Handed over to JKR in 2009

15.

Teluk Lipat Coastal Protection Works

Detailed Design is ongoing

16.

East Coast Rail Route (ECRR)

Feasibility Study is ongoing

17.

KPP Phase 1

Construction of Phase 1 commenced and ongoing

72 ECERDC 2010 ANNUAL REPORT

During the year under review, ECERDC had appointed PriceWaterhouseCoopers Capital
Sdn Bhd, in collaboration with ZulRafique & Partners, to undertake a detailed study on
the formation and operationalization of ECERDCs Real Estate Corporation (REC) and the
utilisation of Real Estate Trust Fund using the REC framework. The study is ongoing and
scheduled to be completed by the middle of 2011.
Among the identified projects for RETF are the Mainland Tourism Coastal Development of
Pantai Sepat and Cherating in Pahang, as well as Teluk Bidara in Terengganu.

OBJECTIVES OF THE REAL ESTATE TRUST FUND

To boost the value of Malay Reserve Land through the lands development
To give a steady and sustainable return to the owners of Malay Reserve Land, who will
act as shareholders in REC through profits derived from the development of the land
To fully realise the optimal development potential for Malay Reserve Land

ECERDC 2010 ANNUAL REPORT 73

THE REVIVAL OF FORMER DARA & LKWJ AREAS

PROJECT IMPLEMENTATION FOR 2010

Following the dissolution of the Development Authority of Pahang Tenggara (DARA) and Jengka Regional Development Authority
(LKWJ), no focused effort has been made in the development and maintenance activities of the areas formerly under DARA and
LKWJ administration due to the lack of specific funding.

The Pahang State Economic Planning Unit and the local authorities of the former DARA and
LKWJ areas have identified 107 projects to be implemented in 2010 under the Special Fund.

Based on the findings of the Strategic Review of the Dissolution of DARA and LKWJ undertaken by ECERDC and
PricewaterhouseCoopers Advisory Sdn Bhd in December 2009, it was recommended that a Special Fund be allocated to the
former DARA and LKWJ areas to implement development and maintenance activities. Subsequently, the Federal Government
has agreed to channel the Special Fund through ECERDC.
On 31 March 2010, ECERDCs Council Members gave the approval for ECERDC to utilise part of the funds allocated to the
statutory body under the 9th Malaysian Plan to undertake general maintenance works, micro development projects and socioeconomic programmes in the former DARA and LKWJ areas. The projects include the upgrading of hawker stalls, surau and
sport facilities for the benefit of the local residents.
Given the specific allocation, it is expected that the pace of development and frequency of maintenance at the former DARA and
LKWJ areas will be enhanced and improved.
The Special Fund was channelled by ECERDC directly to the six respective local authorities in the former DARA and LKWJ areas
comprising the districts of Temerloh, Jerantut, Maran, Pekan, Rompin and Bera.
The Pahang State Economic Planning Unit plays a role as the body which coordinates all the general maintenance works, micro
development initiatives and socio-economic programmes at the state level, particularly in terms of interacting with all the relevant
local authorities. It will ensure the prioritisation of projects in order to accelerate the maintenance works, development and socioeconomic programmes in the former DARA and LKWJ areas.
The Federal Government has agreed to continue allocating the Special Fund to the former DARA and LKWJ areas via ECERDC
under the 10th Malaysian Plan (2011 and 2012). In 2011 and 2012, strategic projects will be added as part of the projects to
be implemented, in addition to the general maintenance works, socio-economic programmes and micro development projects.

CRITERIA FOR PROJECT SELECTION


The projects selected under this initiative must fulfil several criteria, which include:
1)
2)
3)
4)
5)
6)

These projects cover socio-economic community programmes, infrastructure projects,


general maintenance projects and micro development projects.
ECERDC has channelled a total sum of RM49.5 million in 2010 to the six local authorities
for the implementation of these projects. They include:
1) Construction of roads and upgrading works at Felda 21 (Temerloh), Felda Gelanggi
(Jerantut) and Rantau Perintis (Jengka)
2) Construction of road and drainage system at Bandar 32, Jengka and Chini
3) Purchase of equipment and machinery to carry out maintenance works at Bera, Maran
and Rompin
4) Construction of tennis court at Bandar Tun Razak, Rompin
5) Upgrading of park facilities at Kota Perdana, Pekan
6) Construction of shop lots at Pekan, Chenor and Maran
7) Installation of street lights at Kota Shahbandar and Felda Keratong 2, Rompin
8) Mosque and community hall upgrading works at Paloh Hinai, Pekan.

IMPACT OF PROJECTS ON DARA AND LKWJ AREAS


The revival of former DARA and LKWJ areas has already brought positive impact to the
local community. For instance, the upgrading of the public amenities under the Special
Fund has already benefitted 24,400 residents from 24 villages.
The construction of roads and the drainage system and upgrading works have improved
the road conditions within the areas and reduced the rate of accidents, while alleviating
the issue of the poor drainage system for 28,000 residents from 26 villages.
The purchase of equipment and machinery for general maintenance works has enhanced the
cleanliness and conditions of the areas involved, benefitting some 659,000 local residents.

Safeguarding the security of the public and crime prevention measures


Promoting a healthy lifestyle
Enhancing public transportation
Promoting sustainable development
Developing a progressive society
Providing good public amenities.

74 ECERDC 2010 ANNUAL REPORT

ECERDC 2010 ANNUAL REPORT 75

Upgrading of Road and Related Works (Felda Jengka 21)

IMPACT:
Added comfort for road users
Reduced the number of road accidents caused by pot holes as well as water retention on roads that pose a danger to the
public during the night
About 1,000 families have been enjoying the improved facilities.

Upgrade the lighting for the public in the area of Bandar 32, Bera, Pahang

IMPACT:
Provide comfort to visitors when engaging in recreational facilities with their families
Ensure the safety of users especially children when playing
This project has benefited 500 families.
76 ECERDC 2010 ANNUAL REPORT

Upgrade the facilities of the surau in the area of Chini, Pekan, Pahang

IMPACT:
Upgrading the suraus facilities would make it more comfortable for visitors when
performing their prayers
Surau is equipped with facilities for ablution and toilet visits
This project is expected to benefit more than 800 visitors each month. It will also be
beneficial to the 100 worshippers in the vicinity
Will be operational on 31 May 2011.
Upgrade community hall in Paloh Hinai, Pekan

IMPACT:
Has benefited with the increase in capacity from 300 people to 500 people
Enables local residents to organize family activities such as weddings, talks and
community gatherings.
ECERDC 2010 ANNUAL REPORT 77

SPECIAL ECONOMIC ZONE


78 ECERDC 2010 ANNUAL REPORT

The ECER Special Economic Zone


(ECER SEZ) acts as a catalyst for
concentrated decentralisation of
economic activities, in line with the
New Economic Model. It will accelerate
growth with focused concentration,
where manufacturing and commercial
activities are promoted and conducted
on preferential excise terms, supported
by good infrastructure development
as well as knowledge-based
and capacity-building
programmes.

ECERDC 2010 ANNUAL REPORT 79

ECER Special Economic Zone: Accelerating Growth


With Focused Concentration
Although the zone physically covers only six percent of the total ECER area, its economic impact is
very big, including in its capacity to contribute 50 percent of the employment opportunities in ECER and
80 percent of the economic output from the whole Region.

EAST COAST ECONOMIC REGION (ECER)

The ECER SEZ is expected


to generate approximately
220,000 new jobs and
investments of

- Dato Sri Mohd Najib Tun Abdul Razak, Prime Minister of Malaysia, at the launch of ECER Special Economic Zone on 4 August, 2009
The ECER Special Economic Zone (ECER SEZ) is a concentration of high-impact projects located within an integrated zone at the
nucleus of ECER. ECER SEZ was launched by the Prime Minister of Malaysia, Dato Sri Mohd Najib Tun Abdul Razak in August
2009 and it is set to be a powerhouse of growth, generating approximately 220,000 new jobs and investments of RM90 billion
(USD26.4 billion) by year 2020.
The ECER SEZs significance to investors lies in its mix of unique attributes which include strategic position, availability and close
proximity to raw materials, established infrastructure, competitive human capital, investment-friendly business policies, strong
Government support and favourable socio-economic conditions.

RM

Pengkalan Kubor

Kota Bharu

billion

Rantau Panjang
Bukit Bunga

90

by year 2020.

Kuala Besut

Kuala Terengganu

KELANTAN

The 25-km by 140-km strip that extends from Kertih in Terengganu to Pekan in Pahang includes four ports, two airports and
innovation zones to support development in manufacturing, oil, gas and petrochemical, agriculture, tourism and education.

TERENGGANU
Gua Musang

Dungun

The Focus Nodes and Free Zones in ECER SEZ, together with the projects, are as listed below:
Kuantan Port City (KPC)
Kuantan Port City (KPC) has been identified as a Major Focus Node for ECER SEZ and will establish itself as the eastern gateway
of Malaysia.
The KPC development involves the expansion of Kuantan Port and the development of new areas for industries, residences,
commercial, tourism, institutional and open spaces.
Kuantan Port Expansion
Kuantan Port is being upgraded to a deepwater harbour and is poised to become a centre for manufacturing and commercial
services while also serving as a regional distribution and international procurement centre.

Kertih
Kuala Lipis

PAHANG
Bentong

Temerloh
Mentakab

It is envisaged that Kuantan Port will become a major eastern port and a gateway for Asia Pacific trade due to its strategic location,
which allows easy access to the Asia Pacific markets with a total population of 2 billion.

Cukai

Kuantan
Gambang
Pekan
Tanjung Agas

Kuala Rompin

Mersing, Johor

The ECER
Special Economic Zone (ECER SEZ)

80 ECERDC 2010 ANNUAL REPORT

ECERDC 2010 ANNUAL REPORT 81

FOCUS NODES AND FREE ZONES IN ECER SEZ

NETWORK CONNECTIVITY WITHIN ECER SEZ


To Dungun / K.Terengganu

Dungun
Focus Nodes and
Free Zones

Bandar
Seri Bandi
Kemasik
Free Zones
(FZs)

Kijal
Kg. Air Putih

Tourism
Zones

Cukai

Kemaman Port - FZ
Kuantan Port - FZ
Kuantan Airport - FZ
Tg. Agas - FZ

Cherating Tourism Town


Pantai Sepat Tourism Town
Kuala Pahang Tourism Zone
Kemasik-Kijal Tourism Zone

Industry Nodes
Tourism Nodes

an
-Mar
ntan
Kua o Valley
Agr

ST
EA

To
Kuala
Lumpur

R
TEME

GAMBANG
Agropolitan Project

Cherating

Bandar
Cheneh Baru

K
TRAL LIN
SEZ CEN

Major Urban Nodes

S W AY (LPT 1 & 2)

Kertih

Kertih Integrated
Petrochemical Complex
Kertih Polymer Park
Kemaman Heavy Industrial Park
Kemaman Boat Building &
Repair Park
Palm Oil Industrial Cluster,
Kuantan
Gambang Science & Halal Park
Pekan Automotive Park
Tg. Agas Maritime Industrial Hub

Kuantan
Port City

CUKAI
CHERATING
KUANTAN
PORT CITY

CO

AS

AK
NT
-ME
H
O
L

KUANTAN
AB

T
/K

IL
RA

To Johor / Singapore

Sg. Lembing

KIJAL
TELUK KALONG /
KEMAMAN
PORT
K

ES

Industrial Parks

Cattle Integration in
Oil Palm Plantations
(Kemaman)

EX
PR

Ketengah
Jaya

Kuantan Port City


(Integrated Development)

Port City

Project

LPT 4)
ESSWAY (
T EXPR
COAS
T
S
EA

Paka
Bandar Al-Muktafi
Billah Shah

PAKA
KERTIH

PANTAI SEPAT

UMP

KUALA PAHANG

PERAMU

PEKAN
TG. AGAS

Palm Oil Industrial Cluster (POIC)


The Palm Oil Industrial Cluster (POIC) is an initiative by ECERDC that is aimed at accelerating
the development of the palm oil industry in the region.
Located in Kuantan in the state of Pahang, POIC takes advantage of its proximity to
Malaysias major palm oil producing areas, petrochemical feedstock and easy accessibility
to palm oil mills that produce sufficient feedstock for the downstream activities.

Kuantan
Gambang

It is also part of the larger Kuantan Port City development that allows POIC to benefit
from the available support services in logistics and transportation, as well as bulking and
distribution facilities.

SEZ

Pantai Sepat

Link

The POIC includes facilities for both upstream and downstream industries. The upstream
industries include the plantation industry, milling and bulk transport of milled products, while
the downstream involves the development of the oleochemical industry to cater for food and
non-food based manufacturing activities.

Kuala
Pahang

Pekan

Tanjung
Agas

Among the promoted sectors of the POIC are surfactant, biodiesel, food, biofertiliser, animal
feedmeal, biomass, phytonutrient and polyutherane.
To encourage investments in the ECERs palm oil cluster, special incentives and tax breaks
will be offered. These companies also have an opportunity to tap into the Regions halal trade.

To Rompin

82 ECERDC 2010 ANNUAL REPORT

ECERDC 2010 ANNUAL REPORT 83

High Res Pic

INTERNATIONAL, REGIONAL AND NATIONAL POSITIONING OF ECER SEZ

Pekan Automotive Park


The Pekan Automotive Park (PAP) is envisioned to become a national and regional hub for
car assembly, manufacturing of automotive parts and components, as well as automotive
R&D activities.

Hinterland to East Asia


Inter-regional hub for Asia Pacific
Integrated industry clusters
Low cost of doing business
Busy nautical routes
Free Zones
Eastern gateway of the country
Promoting international/regional trade
linkages and investment

Equipped with plug-and-play infrastructure provided by ECERDC, the Park is estimated to


generate some RM4.5 billion in investments throughout its three stages of development,
with a total of 10,580 jobs to be created. It is expected to contribute RM12 billion to the
Gross National Income (GNI) by 2015.
ECERDC intends to position the Pekan Automotive Park as the eco-friendly, first mover
in the production of environmentally-friendly vehicles, which include electric vehicles and
related technologies, such as battery suppliers, transportation infrastructure and renewable
energy providers.
Well-known investors that have already made their presence in PAP include DRB-Hicom,
Mercedes Benz and Volkswagen.
Kertih Polymer Park (KPP)
Kertih Polymer Park is Malaysias first fully integrated plastics and polymer park and is wellpositioned to leverage on ready feedstock from the nearby Kertih Integrated Petrochemical
Complex and Gebeng Integrated Petrochemical Complex.
KPP offers vast investment opportunities in the midstream to downstream petrochemical
activities mainly in ethanol, methanol, methane, ammonia, polyethylene and polycarbonate.
Kemaman Heavy Industrial Park
Kemaman Heavy Industrial Park will focus on the development of heavy industries,
particularly the iron and steel making industry, mechanical and electrical industries, steel
industry and petrochemical industry, as well as other supporting industries.

Gambang Halal Park


The 200-acre Gambang Halal Park was planned in response to the overwhelming global demand for Halal products. The Park
will leverage on the abundance of resources available in the hinterland area and focuses on both food and non-food industries.
The Park will act as a downstream processing centre for ECERDCs other initiatives such as fisheries, crops, herbal, meat and
poultry, as well as palm oil downstream products coming from POIC. Focus will also be given to the ingredients industry, healthcare
and cosmetic products.

84 ECERDC 2010 ANNUAL REPORT

ECERDC 2010 ANNUAL REPORT 85

ECER: The Investors Gateway


With its strategic location facing the South China Sea, ECER is poised to become a major trade and
industrial gateway, offering investors access to the vast, burgeoning markets of the Asia Pacific with a
total population of 2 billion.
In addition to its distinctive, dynamic and competitive attributes, ECER has also attracted investors
through its investment-friendly policies and incentives.
Between the period of 2008 and December 2010, ECER managed to attract RM36.5 billion worth of investments, compared with
RM28.3 billion as of end-2009. Of the amount, RM15.3 billion worth of investments have already been received.

Non-fiscal Incentives
The respective State Governments of Kelantan, Terengganu, Pahang and Johor also
grant non-fiscal incentives to approved companies. These include discount rate for land
premium, quit rent and land assessment, guaranteed land lease periods for a specific time
period and flexibility in the employment of expatriates.

RM
billion

15.3

worth of investments have


already been received.

Investors can also benefit from the special flexibility in foreign exchange administration
under Bank Negara Malaysia, exclusively granted to companies accorded ECER status
with fiscal incentives.

Among the promoted key projects in ECER are the Pekan Automotive Park, Kertih Polymer Park, Kemaman Heavy Industrial
Park, Gambang Halal Park, Palm Oil Industrial Cluster, Pantai Sepat
Mainland Coastal Tourism, ECER Herbal Cluster Development and
Cherating Mainland Coastal Tourism.

ECER: YOUR UNIQUE INVESTMENT DESTINATION


To enhance ECERs appeal as an ideal investment destination, a
package of attractive fiscal and non-fiscal incentives have already
been put in place for investors who choose ECER as their base.
ECER fiscal incentives include:
Ten years income tax exemption from the year a company derives
its statutory income
Five years Investment Tax Allowance (ITA) of 100 percent on
qualifying capital expenditure
Import Duties & Sales tax exemption
Customised incentives to companies based on the merit of each case
These incentives are awarded to projects that commence operations
before 31 December 2015.

86 ECERDC 2010 ANNUAL REPORT

ECERDC 2010 ANNUAL REPORT 87

ONE-STOP CENTRE FOR INVESTORS


To facilitate the needs of investors in the Region, ECERDC continues to serve as a One-Stop service centre which handles the
coordination between ECER and Government entities, especially in fast-tracking investors applications.
The tasks of ECERDCs One-Stop Centre are:
Acting as a single point of contact for all investors who are interested to invest in ECER and provide advisory services for investors
Simplify and shorten procedures and guidelines for issuance of business approvals and planning permits, as well as authorisation
Process and coordinate fiscal and non-fiscal incentive applications for ECER projects
Coordinate and approve the application for manufacturing license (ML) and expatriate positions

INVESTMENT PROMOTION

Through our participation in the Kelantan Cheng Ho Expo in November 2010, ECERDC
managed to reach out to the Chinese community who were made aware of the investment
opportunities in the Region.
ECERDCs participation in the World Chinese Economic Forum held in Kuala Lumpur in
December 2010 has resulted in a reciprocal visit by 50 high net worth individuals from
the global Chinese diaspora to the State of Pahang in 2011, with potential investments
exceeding RM2 billion.
ECERDC also participated in various investment missions organised by the Malaysian
Industrial Development Authority (MIDA) to other key markets such as Korea and
Singapore, in its effort to create ECER brand awareness and ensure continuous promotion
of the investment opportunities in the Region, especially in ECER SEZ.

ECERs investment promotion drive was intensified during 2010 with activities undertaken to draw investors from key focus
markets such as China, the Middle East, India, Singapore and Korea, as well as Malaysia.
In May 2010, ECERDC organised an investment mission to the United Arab Emirates and the Kingdom of Saudi Arabia, led by the
National Corridor Development Adviser, Y.A. Bhg Tun Abdullah Haji Ahmad Badawi. During the mission, the ECERDC delegation
met with potential investors in both countries to promote the available investment opportunities in ECER, especially in the ECER
Special Economic Zone (ECER SEZ).
The mission resulted in the signing of an MOU in July 2010 to set up a joint venture for the development of a Common User
Supply Base within the Tanjong Agas Oil & Gas and Logistics Industrial Park.
ECERDC reached out to Chinese investors through three events in 2010, namely, the China International Fair for Investment &
Trade 2010 (CIFIT) in Xiamen, China, the Kelantan Cheng Ho Expo in Kota Bharu and the World Chinese Economic Forum in
Kuala Lumpur.
At CIFIT, ECERDC secured a RM116 million investment from an investor in Chongqing for the manufacture of Ferro Manganese.
An MOU was also signed with investors in Xiamen to set up a refinery in the Palm Oil Industrial Cluster, with an estimated
investment amount of RM100 million.

88 ECERDC 2010 ANNUAL REPORT

ECERDC 2010 ANNUAL REPORT 89

ECER in the News


Throughout 2010, ECER was prominently featured in both the national
and international media.

90

ECERDC 2010 ANNUAL REPORT

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ECER in the News

92

ECERDC 2010 ANNUAL REPORT

ECERDC 2010 ANNUAL REPORT 93

ECER in the News

94

ECERDC 2010 ANNUAL REPORT

ECERDC 2010 ANNUAL REPORT 95

ECER in the News

96

ECERDC 2010 ANNUAL REPORT

ECERDC 2010 ANNUAL REPORT 97

CALENDAR OF EVENTS
98

ECERDC 2010 ANNUAL REPORT

ECERDC 2010 ANNUAL REPORT 99

Calendar
CalendarOfofEvents
Events
February 2010
January 2010

30 Jan-4 Feb
ECER Familiarisation Visit to Manama, Bahrain
12 January
1st Terengganu Implementation
and Coordination Committee (ICC)
meeting in Kuala Terengganu

March 2010

20-22 March
ECER-KPT Entrepreneurial Convention, Kota Bahru
12 January
Launch of KerJaya Terengganu

19-24 January
Prime Minister of Malaysias
Investment Mission to India,
including the Malaysian Property
Expo, Chennai
20 March
ECER KerJaya Launch, Kelantan

100

ECERDC 2010 ANNUAL REPORT

ECERDC 2010 ANNUAL REPORT 101

Calendar of Events

June 2010
31 March
1st Council Meeting in Parliament, Kuala Lumpur

1 June
1st Kelantan ICC meeting
in Kota Bharu, Kelantan

May 2010

7 June
1st Pahang ICC meeting in Kuantan, Pahang

7-17 May
ECERDC Investment Mission to the Middle East

14 June
2nd Terengganu ICC meeting in Kuala Terengganu, Terengganu

102

ECERDC 2010 ANNUAL REPORT

ECERDC 2010 ANNUAL REPORT 103

Calendar of Events

July 2010

14 June
MOU Signing Ceremony on Telaga Papan & Ulu Tersat Multiplier Farms

19 July
2nd Council Meeting in Prime Ministers Office, Putrajaya

26 July
MOU Signing Ceremony for the
Development of Supply Based
Facilities between Tanjung Agas,
OSC & ECER
12-21 July
Visit by His Highness Prince Faisal Al Saud to Malaysia

12 July
1st Johor ICC meeting in Kota Iskandar Nusajaya, Johor

104

ECERDC 2010 ANNUAL REPORT

31 July
Launch of empower Programme, Bentong, Pahang

ECERDC 2010 ANNUAL REPORT 105

Calendar of Events

August 2010

September 2010

4-12 September
ECERDCs Participation at CIFIT 2010 China: Investment Mission
& MOU Signing
5-6 August
ECERDCs participation in MIDA Trade Investment Mission
to Singapore

8 August
ECERDCs Inaugural Dorper Sheep
Auction, Agropolitan Pekan, Pahang

25 September
Re-location of 100 Participants to Agropolitan
Batu 8, Mukim Lepar

October 2010

9 August
Launch of Pahang Biodiversity Strategic
Action Plan, Pahang

106

ECERDC 2010 ANNUAL REPORT

1 October
ECERDCs KL Office Aidil Fitri Celebration,
Maya Hotel, Kuala Lumpur
ECERDC 2010 ANNUAL REPORT 107

Calendar of Events

7 October
ECERDCs Kuala Terengganu Office Aidil Fitri
Open House

18 October
2nd Kelantan ICC meeting in Kota Bharu,
Kelantan

7 October
3rd Terengganu ICC meeting in Kuala
Terengganu, Terengganu
26 October
2nd Pahang ICC meeting in Kuantan, Pahang

November 2010

12 October
JV Agreement Signing Ceremony between
Tanjung Agas & OSC in Kuantan Pahang

108

ECERDC 2010 ANNUAL REPORT

21-26 November
ECERDCs participation in Cheng Ho
Expo 2010, Kelantan
ECERDC 2010 ANNUAL REPORT 109

Calendar of Events
December 2010
30 Nov-5 December
ECERDCs Participation in the Monsoon Cup
2010, Pulau Duyung, Terengganu
2 December
Menteri Besar Johors working visit to ECER
pilot projects under the Vendor Development
Programme-Sewing Project and Boat
Building and Repair Centre (BBRC),
Mersing, Johor

11 December
Tanjung Agas Ground Breaking Ceremony

1-3 December
ECERDCs Participation in the 2nd
World Chinese Economic Forum,
KL Convention Centre

110

ECERDC 2010 ANNUAL REPORT

16 December
3rd Council Meeting in Parliament,
Kuala Lumpur.

ECERDC 2010 ANNUAL REPORT 111

Our Team
The passion and commitment of ECERDC employees in carrying out their duties plays a key role in
ensuring that all ECER projects and programmes are carried out as planned.
To us, our post is not just a regular job. Instead, it is a duty driven from the heart to make a difference
to better the lives of more than 4 million people in ECER. As much as it is a responsibility, the task is
also a privilege as we are able to participate in this noble nation-building exercise.

II. Microsoft Outlook 2007 & 2010 Training


Objective: To familiarise ECERDC users with the basic function and features in Outlook
2007 & 2010 for daily operational usage.

Microsoft Training Module

Date

Microsoft Office 2007 & 2010

ECERDCs management and employees are entrusted to carry out the strategic planning, execution and implementation of all
projects and programmes identified in the ECER Master Plan.
Commitment, dedication and passion are key qualities that distinguish our team, as we work to ensure timely delivery of project
implementation and aggressively attract investors into the Region.

28 Sept 2010

Coming from a wide variety of


disciplines and backgrounds,
ECERDC staff are carefully
chosen based on their

skills

and competency.

1) SAP Training: Based on Business Information System (BIS)


Objective: To familiarize ECERDC users with BIS features for daily operational usage based
on their respective divisions.

ECERDC staff are thus carefully chosen based on their skills and competency from a wide variety of disciplines and backgrounds.
While making a difference to the lives of the people of ECER, it is also important for ECERDC to ensure that our staff remain
motivated and loyal to the organisation in the pursuit of a fulfilling career.
Our team undergoes relevant training programmes designed to help them gain hands-on experience, participating in a series of
classroom trainings and leadership engagement sessions.

LIST OF SAP & IT TRAINING FOR ECERDC STAFF IN 2010

SAP Training Module

Date

Finance

27-30 September 2010


1, 5 & 7 October 2010

Procurement

27-29 September 2010


1, 6 & 7 October 2010

Human Resource

27-30 September 2010

Project System

27-30 September 2010


1, 4, 5, 7 & 8 October 2010

I. Sap Training:
Objective: To familiarise the relevant ECERDC staff with the basic functions and features of the SAP system for daily operational usage.

SAP Training Module

112

Date

SAP ERP Financials


(AC050 Business Processes in Financial & Management Accounting with the New GL)

22-25 March 2010

SAP ERP Material Management (SCM500 Processes in Procurement)

22-26 March 2010

SAP ERP Human Capital Management (HR050 Business Processes in Human


Capital Management)

22-26 March 2010

SAP ERP Project System (PLM200 Business Processes in Project Management)

24-26 March 2010

SAP Business Objects


(BOX310 SAP Business Objects Xcelsius 2008 Enterprise: Core and Connectivity)

29-30 March 2010


1 April 2010

ECERDC 2010 ANNUAL REPORT

ECERDC 2010 ANNUAL REPORT 113

STAYING FOCUSED
LIST OF TRAINING

Title

Date

12th Malaysia Strategic Outlook Conference 2010

26 January 2010

Herbal & Biotechnology Industry Development Workshop

1 March 2010

National Procurement Conference 2010

9 & 10 March 2010

Agritech & Biotech Investment Forum 2010

30 March 2010

International Certificate in Risk Management (ICIRM)

8 May 2010 - 16 October 2010 (12 Days)

National Legal Counsel Forum 2010

7 & 8 June 2010

Effective Cash Flow Management

19 & 20 July 2010

Governance & Ethical Practices in the Boardroom

19 & 20 July 2010

National Procurement Guidelines Forum Understanding the Integrity Pact & the Dos
and Donts of Govt Procurement

22 July 2010

National Symposium on the 10th Malaysia Plan

2 August 2010

Kulliyyah of Architecture & Environmental Design

2 August 2010

Malaysian Corporate Tax & Incentive Workshop

5 April & 28 June 2010

Speak, Present & Deliver

5 & 6 October 2010

Beginning Auditor Tools & Techniques

18 & 21 October 2010

Rail Planning & Development Workshop

25 & 26 October 2010

Middle East Update 2010 Conference

28 October 2010

STAFF ENGAGEMENT ACTIVITIES

Unlocking Potential : Towards a High Income Economy

25 October 2010

Vmware vSeminar (IT Training)

4 November 2010

Performance Auditing

9 & 10 November 2010

As part of management efforts to engage with the employees and bring all of them together, the
Human Resource & Administration division organised a special Hari Raya Aidil Fitri gathering
for all ECERDC staff at Hotel Maya, Kuala Lumpur on 1 October, 2010.

Daily-Processed Cheese In-House Seminar

11 & 12 November 2010

GOING TO THE GROUND


ECERDC employees regularly visit each of the four ECER states to ensure that our projects and programmes are faithfully carried
out over the various phases. They also reach out to the local people whose lives and livelihoods are being transformed, in order to
better understand their needs and aspirations.
In ensuring that positive changes impact the Region, our management and staff have always strived as a team; be it when engaging
with the ECER populace in faraway villages, to negotiating with jet-setting investors during our investment missions abroad.

114

The management and staff of ECERDC have been steered towards the right direction by
the Council, which is chaired by the Prime Minister of Malaysia himself. Their passion and
dedication will translate into the timely delivery of ECER projects and programmes that will
have a positive impact on the Region and contribute towards the development of the nation.

ECERDC 2010 ANNUAL REPORT

The division also held an Employee Engagement Session on 15 November, 2010 at PETRONAS
Training Centre (PERMATA) in Bangi. The objectives of the programme were to share the
current activities and projects undertaken by ECERDC and the roles and functions of each
division among all its personnel, as well as to promote teamwork among all employees.
On 17 December 2010, a farewell gathering was held for all PETRONAS secondees who were
returning to the national oil and gas company after serving ECERDC. The special event was
held as an expression of gratitude for their valuable contributions to the Council, as most of
them have been with ECERDC since the inception of ECER in 2008.

ECERDC 2010 ANNUAL REPORT 115

Financial Statements For The Financial Year Ended 31 December 2010

FINANCIAL STATEMENT
116

ECERDC 2010 ANNUAL REPORT

Page 117 Statement by the Members


Page 118 Statutory Declaration
Page 119 Balance Sheet
Page 120 Income Statement
Page 121 Statement of Changes in Equity
Page 122 Cash Flow Statement
Page 123 Notes to the Financial Statements
Page 130 Audit Committee Report 2010

EAST COAST ECONOMIC REGION DEVELOPMENT COUNCIL


(Established in Malaysia under the East Coast Economic Region Development Council Act 2008 (Act 688))

ECERDC 2010 ANNUAL REPORT 117

Statement By The Members

Of East Coast Economic Region Development Council

SAMPLE

We, DATO SRI MOHD NAJIB BIN TUN HAJI ABD RAZAK and DATO SHAMSUL AZHAR
BIN ABBAS, being the Chairman and one of the Members of EAST COAST ECONOMIC
REGION DEVELOPMENT COUNCIL state that, in the opinion of the Members of the
Council, the accompanying Balance Sheet, Income Statement, Statement of Changes in
Equity, Cash Flow Statement and Notes to the Financial Statements are properly drawn
up so as to give a true and fair view of the state of affairs of EAST COAST ECONOMIC
REGION DEVELOPMENT COUNCIL at 31 December 2010 and of its operating results
and cash flows for the financial year ended on that date.
On behalf of the Members of the Council,

DATO SRI MOHD NAJIB BIN TUN HAJI ABD RAZAK


CHAIRMAN

DATO SHAMSUL AZHAR BIN ABBAS


MEMBER
Date :
Place :

118

ECERDC 2010 ANNUAL REPORT

ECERDC 2010 ANNUAL REPORT 119

Statutory Declaration By The Officers Primarily


Primarily
Responsible
For The Financial
Management
Responsible
For The Financial
Management
Of
Of East
East Coast
Coast Economic
Economic Region
Region Development
Development Council
Council

Balance Sheet

as at 31 December 2010


Note

2010
RM

2009
RM

Non-Current Assets
Property, Plant and Equipment
Work-In-Progress

We, DATO JEBASINGAM ISSACE JOHN and MOHD ZAMZURI BIN MOHD YUSOFF,
the officers primarily responsible for the financial management of EAST COAST
ECONOMIC REGION DEVELOPMENT COUNCIL, do solemnly and sincerely declare
that the accompanying Balance Sheet, Income Statement, Statement of Changes in
Equity, Cash Flow Statement and Notes to the Financial Statements are, to the best of
our knowledge and belief, correct and we make this solemn declaration conscientiously
believing the same to be true, and by virtue of the provisions of the Statutory Declaration
Act, 1960.

Other Receivables, Deposits and Prepayments


Cash and Cash Equivalents

5,072,388
28,450,642

70,096,452

33,523,030

5
6

88,555,782
680,848,652

2,659,326
441,191,207

769,404,434

443,850,533

Current Liabilities
Other Payables and Accruals


Net Current Assets

36,510,743 18,393,291
36,510,743

18,393,291

732,893,691 425,457,242

802,990,143 458,980,272

Represented by:
Federal Government Grants :
Operating Fund
Development Fund
Real Estate Trust Fund

...... ......
MOHD ZAMZURI BIN MOHD YUSOFF
DATO JEBASINGAM ISSACE JOHN
(531110-05-5241) (690531-02-5559)

13,084,453
57,011,999

Current Assets

Net Assets

Subscribed and solemnly declared by the above named at Kuala Lumpur on this
___________________.

3
4

8
9
10

11,007,545
690,083,803
101,898,795

20,986,805
338,406,706
99,586,761

802,990,143

458,980,272

Before me,


......

COMMISSIONER FOR OATHS

The notes set out on pages 123 to 129 form an integral part of, and should be read in conjunction with, these financial statements.

120

ECERDC 2010 ANNUAL REPORT

ECERDC 2010 ANNUAL REPORT 121

Income
Statement
Income
Statement

Statement Of Changes In Equity

for the
financial
yearyear
ended
31 December
2010
for the
financial
ended
31 December
2010

for the financial year ended 31 December 2010

Note

2010
RM

2009
RM

INCOME
Federal Government Grants:
Operating Fund
8
32,000,000
55,000,000
Amortised Development Fund
9
210,086,175
40,118,818
Amortised Real Estate Trust Fund
10
449,042
88,274
Other Income
11
270,515
472,791
TOTAL INCOME

242,805,732

8
9
10

(42,249,775)
(210,086,175)
(449,042)

(49,591,565)
(40,118,818)
(88,274)

TOTAL EXPENDITURE

(252,784,992)

(89,798,657)

NET (DEFICIT) / SURPLUS FOR THE FINANCIAL YEAR

(9,979,260)

5,881,226

The notes set out on pages 123 to 129 form an integral part of, and should be read in conjunction with, these financial statements.

122

ECERDC 2010 ANNUAL REPORT

NOTE

OPERATING DEVELOPMENT REAL ESTATE


FUND
FUND
TRUST FUND
RM
RM
RM

TOTAL
RM

Balance as at 1 January 2009


Federal Government Grants
Transfer (from)/to
Expenditure
Other Income

8,9,10
8,9,10
9,10
8,9,10
8,9,10

15,105,579
55,000,000
(49,591,565)
472,791

24,284,815
450,000,000
(99,300,844)
(40,118,818)
3,541,553

99,300,844
(88,274)
374,191

39,390,394
505,000,000
(89,798,657)
4,388,535

Balance as at 1 January 2010


Federal Government Grants
Expenditure
Other Income

8,9,10
8,9,10
8,9,10
8,9,10

20,986,805
32,000,000
(42,249,775)
270,515

338,406,706
549,000,000
(210,086,175)
12,763,272

99,586,761
(449,042)
2,761,076

458,980,272
581,000,000
(252,784,992)
15,794,863

11,007,545

690,083,803

101,898,795

802,990,143

95,679,883

EXPENDITURE
Operating Expenditure
Development Expenditure
Real Estate Trust Fund Expenditure

DESCRIPTIONS

Balance as at 31 December 2010

The notes set out on pages 123 to 129 form an integral part of, and should be read in conjunction with, these financial statements.

ECERDC 2010 ANNUAL REPORT 123

Cash Flow Statement

Notes To The Financial Statements

for the financial year ended 31 December 2010

31 December 2010


2010 2009

RM RM

1. PRINCIPAL ACTIVITIES

CASH FLOW FROM OPERATING ACTIVITIES


Cash Receipts from the Government
Cash Receipts from Tender Activities and Others
Cash Paid to Suppliers and Employees

581,000,000
455,278
(356,780,105)

505,000,000
35,290
(112,787,477)

Net Cash Generated from Operating Activities

224,675,173

392,247,813

CASH FLOW FROM INVESTING ACTIVITIES


Income from Fixed Deposits

14,982,272

2,880,530

Net Cash Generated from Investing Activities

14,982,272

2,880,530

NET INCREASE IN CASH AND CASH EQUIVALENTS

239,657,445 395,128,343

CASH AND CASH EQUIVALENTS AT THE BEGINNING


OF THE YEAR

441,191,207 46,062,864

CASH AND CASH EQUIVALENTS AT THE END


OF THE YEAR (Note 6)

680,848,652

441,191,207

3,200,434
677,648,218

1,641,207
439,550,000

CASH AND CASH EQUIVALENTS


Bank Balances
Fixed Deposits with Licensed Banks


680,848,652 441,191,207

East Coast Economic Region Development Council (ECERDC) was established on 13 June 2008. The
main objectives of ECERDC are to:
(a) stimulate, promote and accelerate the growth of the East Coast Economic Region in an equitable and
sustainable manner;
(b) stimulate, promote and accelerate the development of the East Coast Economic Region into a world
class economic region and a choice destination for investment, work and living; and
(c) ensure that social development and sustainable development are kept as priorities whilst driving
economic growth in the East Coast Economic Region.

East Coast Economic Region comprises the states of Kelantan, Terengganu, Pahang, as well as the district
of Mersing in Johor. It covers an area of 66,736 km square, which is approximately 51% of the Peninsular
Malaysia.

The total number of employees of ECERDC at year end was 135 (2009: 119).

The registered office and principal place of operation of ECERDC is located at Level 69, Tower 2,
PETRONAS Twin Towers, 50088, Kuala Lumpur, Malaysia.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES


The following accounting policies are adopted by ECERDC and consistent with applicable approved
standards for private entities issued by the Malaysia Accounting Standards Board (MASB).

(a) Basis of Accounting


The financial statements of ECERDC are prepared on the historical cost basis except as disclosed
in the notes to the financial statements and in compliance with the provisions of the East Coast
Economic Region Development Council Act 2008 (Act 688) and Private Entity Reporting Standards
(PERS) issued by MASB.
(b) Income Recognition
Government Grants
Operating and development grants are recognized when the rights to receive the grants are approved
and the grants will be received during the financial year.

Development grants are recognized in the income statement over the financial period necessary to
match them with the expenditure incurred. Unutilised grants are presented in the balance sheet as
deferred grants.

Deferred grants relating to purchase of assets are amortised in the income statement over the life of
the assets by an amount equal to the depreciation charge.

(c) Property, Plant and Equipment


All property, plant and equipment are stated at cost less accumulated depreciation and impairment.
Property, plant and equipment purchased at cost of below RM1,000 are expensed as incurred.
Depreciation
The straight line method is used to write off the cost of the property, plant and equipment over the term
of their estimated useful lives at the following principal annual rates:
Motor vehicles
Computers & ICT related equipment
Furniture, fittings, office equipment

The notes set out on pages 123 to 129 form an integral part of, and should be read in conjunction with, these financial statements.

20%
33.33%
20%

(d) Work-in-Progress
All works-in-progress are stated at cost and are not depreciated. The costs of completed projects
which are not to be owned by ECERDC, will be charged to the income statement whereas those to be
owned by ECERDC, will be capitalized as Property Plant and Equipment and depreciated accordingly.
(e) Other Receivables
Other receivables are carried at anticipated realizable values. Bad debts are written off in the financial
period in which they are identified. An estimate is made for doubtful debts based on a review of all
outstanding amounts at the financial period end.

124

ECERDC 2010 ANNUAL REPORT

ECERDC 2010 ANNUAL REPORT 125

Notes To The Financial Statements


for the financial year ended 31 December 2010

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD)


(f) Taxation and Deferred Taxation
Current tax is the expected amount of income taxes payable in respect of dividend income pursuant
to the tax exemption obtained from the Ministry of Finance as mentioned in note 13. It is measured
using the tax rates that have been enacted by the Inland Revenue Board at the balance sheet date.

No deferred taxation is recognised for the financial period due to the tax exemption.

(g) Other Payables


Other payables are stated at the amounts which ECERDC is contracted or obligated to settle.
(h) Provision for Liabilities
Provision for liabilities is recognized when ECERDC has a present legal and contractual obligation as
a result of past event, when it is probable that an outflow of resources embodying economic benefits
will be required to settle the obligation, and when a reliable estimate can be made of the amount of
the obligation. Provisions are reviewed at each balance sheet date and adjusted to reflect the current
best estimate. Where the effect of the time value of money is material, the amount of a provision is the
present value of the expenditure expected to be required to settle the obligation.
(i) Cash and Cash Equivalents
Cash and cash equivalents consist of cash, bank balances and fixed deposits with licensed bank
which are readily convertible to known amounts of cash and which are subjected to an insignificant
risk of change in value.
(j) Impairment of Assets
At each balance sheet date, ECERDC reviews the carrying amounts of its assets to determine whether
there is any indication of impairment. If any such indication exists, the impairment is measured by
comparing the recoverable amount with the carrying amount of an asset and when the latter amount
is higher, the asset is written down to the recoverable amount. The recoverable amount of an asset is
the higher of its net selling price and its value in use, which is measured by reference to discounted
future cash flows.

An impairment loss is charged to the income statement immediately, unless the asset is carried
at revalued amount. Any impairment loss of a revalued asset is treated as a revaluation decrease
to the extent of previously recognized revaluation surplus for the same asset. Should the impairment
loss of an asset exceed its revaluation surplus, the surplus impairment loss is charged to the
income statement.
Subsequent increase in the recoverable amount of an asset if carried at cost, is treated as a reversal
of the accumulated impairment loss previously recognized in the income statement but the reversal is
limited to the accumulated impairment loss previously recognized, and if carried at revalued amount,
is credited directly to revaluation surplus.

3. PROPERTY, PLANT AND EQUIPMENT



COMPUTER AND
FURNITURE, FITTINGS,
TOTAL

ICT EQUIPMENT
OFFICE EQUIPMENT

& OTHER EQUIPMENT

RM RM RM
Cost

At 1 January 2010

3,151,543

Additions

Reclassification

Disposal / Write off

At 31 December 2010

Accumulated Depreciation

At 1 January 2010

Depreciation for the year

Reclassification

Disposal / Write off

At 31 December 2010

Carrying Amount

At 31 December 2010

3,266,823

6,418,366

10,884,365

530,069

(31,580)

31,580

(77,874)

(30,470)

(108,344)

13,926,454

3,798,002

17,724,456

824,832

521,146

1,345,978

2,626,354

724,025

3,350,379

(8,400)

8,400

(45,484)

(10,870)

(56,354)

3,397,302

1,242,701

4,640,003

10,529,152

11,414,434

2,555,301 13,084,453

Cost

At 1 January 2009

709,294

784,663

1,493,957

Additions

2,442,249

2,482,160

4,924,409

At 31 December 2009

3,151,543

3,266,823

6,418,366

129,805

16,022

145,827

Accumulated Depreciation

(k) Foreign Currency


Transactions in foreign currencies are recorded in Malaysia Ringgit at rates of exchange ruling at the
time of the transactions.

At 1 January 2009

Additions

695,027

505,124

1,200,151

(l) Employee Benefits


Short Term Benefits
Wages, salaries, bonuses and social security contributions are recognized as an expense in the year
in which the associated services are rendered by employees of ECERDC.

At 31 December 2009

824,832

521,146

1,345,978

Carrying Amount

At 31 December 2009

2,326,711 2,745,677 5,072,388

Defined Contribution Plan


ECERDC is required by law to make monthly contributions to Employees Provident Fund (EPF), a
statutory defined contribution plan for all its eligible employees based on certain prescribed rates of
the employees salaries. Obligations for contributions to defined contribution plans are recognized as
an expense in the income statement as incurred. The employees contribution to EPF is included in
salaries and wages.

126

ECERDC 2010 ANNUAL REPORT

ECERDC 2010 ANNUAL REPORT 127

Notes To The Financial Statements


for the financial year ended 31 December 2010

4. WORK-IN-PROGRESS

8. OPERATING FUND

Cost



Balance as at 1 January
Costs incurred during the year
Transfer of completed projects to Income Statement

Balance as at 31 December

2010
RM
28,450,642
56,565,426
(28,004,069)

2009
RM

Balance as at 1 January
Federal Government Grant
Other Income
11

20,986,805
32,000,000
270,515

15,105,579
55,000,000
472,791

57,011,999 28,450,642

Total Income

53,257,320

70,578,370

Staff Costs
Council Members Allowances
Tender Board Members Allowances
Other Committees Members Allowances
Travelling Expenses
Communication and Utility Expenses
Rental Expenses
Supplies and Other Materials
Repair and Maintenance
Legal Services
Business and Consultancy Management Services
Marketing and Promotions
Computer and Data Processing Services
Human Capital Training Services (Economic Stimulus Package)
Printing Services
Security Services
Storage Services
Recruitment Services
Staff Training Expenses
Depreciation of Property, Plant and Equipment
Fixed Asset Written-Off
Audit Fee
Bank Charges
Meeting Expenses
Insurance
Other Expenses

11,952,606
311,500
21,200
101,800
2,789,534
558,910
3,341,500
792,200
263,615
893,948
2,251,989
4,805,974
1,445,001
9,564,961
524,437
68,389
32,936
195,106
133,531
1,839,580
44,608
13,000
5,591
145,370
24,059
128,430

6,430,935
291,000
16,450
79,350
2,085,597
851,928
3,967,735
537,269
863,603
834,118
12,925,907
8,206,657
231,192
9,467,186
593,793
82,840
16,009
431,936
103,084
1,200,151
13,000
4,979
311,000
16,408
29,438

Total Expenditure

42,249,775

49,591,565

Balance as at 31 December

11,007,545

20,986,805

2009
RM

PROJECT
Property, Tourism & Manufacturing
Infrastructure
Agriculture

2,707,963
3,050,848
51,253,188

3,800,000
24,650,642

Total

57,011,999

28,450,642

5. OTHER RECEIVABLES, DEPOSITS AND PREPAYMENTS



2010
RM

2009
RM

Accrued Investment Income


Prepayments
Deposits
Staff Advance

1,860,248
85,184,413
1,483,832
27,289

1,502,935
1,156,391
-

88,555,782

2,659,326

6. CASH AND CASH EQUIVALENTS



2010
RM

2009
RM

2009
RM

2010
RM

Bank Balances
Fixed Deposits with Licensed Banks

2010
RM

28,450,642
-

Breakdown of Work-in-Progress


Note

3,200,434
677,648,218

1,641,207
439,550,000

680,848,652 441,191,207

7. OTHER PAYABLES AND ACCRUALS



2010
RM

2009
RM

Other Payables
Accruals

10,018,687
26,492,056

7,291,770
11,101,521

36,510,743 18,393,291

Other payables comprise amounts outstanding for ongoing costs.

128

ECERDC 2010 ANNUAL REPORT

ECERDC 2010 ANNUAL REPORT 129

Notes To The Financial Statements


for the financial year ended 31 December 2010

9. DEVELOPMENT FUND





Balance as at 1 January
Federal Government Grant
Tender Fees
Investment Income

2010
RM
338,406,706
549,000,000
402,920
12,360,352

24,284,815
450,000,000
17,410
3,524,143

40,118,670
148

210,086,175 139,419,662

690,083,803 338,406,706

10. REAL ESTATE TRUST FUND






Balance as at 1 January
Transfer from Development Fund
Investment Income

Total Income

2010
RM
99,586,761
-
2,761,076

2009
RM
99,300,844
374,191

88,274

88,274

Balance as at 31 December

11. OTHER INCOME OPERATING FUND






Tender Fees
Investment Income
Other Income

ECERDC 2010 ANNUAL REPORT

11,952,606

2009
RM
6,430,935

Excluded in staff costs was the cost of PETRONAS secondees of RM5,981,309. This cost was fullyborne by PETRONAS (2009: RM7,406,783).
13. INCOME TAX
ECERDC has obtained tax exemption under Section 127(3A) of the Income Tax Act, 1967 (MOF letter
dated 20 February 2009, reference no (8.09)248/39/7-871(3)). All income except for dividend income
is exempted from tax beginning from year assessment 2008 until 2017.
14. COMMITMENTS

2010
RM

2009
RM

Approved and contracted:

Operating Expenditure

8,775,363

14,452,993

Development Expenditure

901,063,763

182,068,906

909,839,126 196,521,899

102,347,837 99,675,035

Amortised Development Grant:


Professional Services and Other Services
449,042

Staff Costs

2010
RM

Included in staff costs was ECERDCs contribution to the Employees Provident Fund of RM1,303,000
(2009: RM653,802).

99,300,844


Balance as at 31 December

900,169,978 477,826,368

Transfer to Real Estate Trust Fund


-
Amortised Development Grant:
Professional Services and Other Services
208,574,881
Depreciation
1,510,799
Bank Charges
495

130

2009
RM

12. STAFF COSTS



449,042

101,898,795 99,586,761
2010
RM
-
218,157
52,358

2009
RM
17,800
454,911
80

270,515 472,791

ECERDC 2010 ANNUAL REPORT 131

Income Statement
AUDIT COMMITTEE REPORT 2010
AUDIT COMMITTEE REPORT 2010
roles and responsibilities.
In line with the ECERDC Internal Audit Charter, and integral in ensuring effective internal control systems
exist within the organization, approved audit programmes on selected areas were undertaken.
2010 recorded two (2) Audit Committee (2) sittings as follows:
i. Second (2nd) Audit Committee Meeting that was held on 7 January 2010, presenting two audit
reports namely Audit on Human Resource Activities, and Audit on Procurement, Purchasing and
Contract Management Activities; and
ii. Third (3rd) Audit Committee Meeting that was held on 21 May 2010. The reports presented in
this meeting were (i) Audit Report on Pekan Agropolitan Project (ii) the ECERDC Audited Financial
Accounts for the Year Ending 31 December 2009, and (iii) Internal Audit Performance Review for
Financial Year 2009/10 including Annual Audit Plans Proposed for the remaining of FY2010 and for
FY2011.
The internal audit programmes that were approved for the remaining of 2010 and to be presented to the
Audit Committee Meeting by 2011 are:
i. Audit on The Management of Project Management Consultant Services, and
ii. Audit on Project Development of the Goat Production Cluster in Terengganu.

132 ECERDC 2010 ANNUAL REPORT

www.ecerdc.com.my
Kuala Lumpur Office
Level 69, Tower 2
PETRONAS Twin Towers
50088 Kuala Lumpur
MALAYSIA
Tel: +603 2035 0000
Fax: +603 2035 0020

Kelantan State Office


Ground Floor & Mezzanine
Lot 137 & 138 Bangunan Sutera Inn Prima
Jalan Dusun Muda off Jalan Bayam
15200 Kota Bharu, Kelantan
MALAYSIA
Tel: +609 746 0021
Fax: +609 746 0020

Terengganu State Office


Ground Floor & 1st Floor
100B Jalan Sultan Zainal Abidin
20000 Kuala Terengganu, Terengganu
MALAYSIA
Tel: +609 620 0021
Fax: +609 620 0020

Pahang State Office


B8002 Sri Kuantan Square
Jalan Teluk Sisek
25050 Kuantan, Pahang
MALAYSIA
Tel: +609 565 0021
Fax: +609 565 0020

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